If the CPI Was 100 in 2000 and 120 in 2010

question 181

Multiple Choice

If the CPI was 100 in 2000 and 120 in 2010 and the price of a gallon of milk was $4.00 in 2000 and $4.80 in 2010, then in relative terms the real of price milk between 2000 and 2010:

• A) increased by 20%.
• B) decreased by 20%.
• C) remained the same.
• D) cannot be determined without knowing the base year.

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Definitions:

Convertible Preferred Stock

A type of preferred stock that holders can convert into a specified number of common stock shares, usually at any time after a predetermined date.

Common Stock

Shares of ownership in a corporation, giving holders voting rights and a portion of the profits through dividends.

Dividend

A portion of a company's earnings distributed to its shareholders, typically paid regularly (e.g., quarterly).

Convertible Preferred Stock

A type of preferred stock that gives the holder the option to convert the shares into a fixed number of common shares after a predetermined date.