The Inflation Rate Is Calculated

question 14

Multiple Choice

The inflation rate is calculated

• A)by determining the change in the price index from the preceding period.
• B)by adding up the price increases of all goods and services.
• C)by computing a simple average of the price increases for all goods and services.
• D)by determining the percentage increase in the price index from the preceding period.

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Definitions:

Debt Cap

A limit set on the amount of debt that an organization or government may incur.

Congress

The national legislative body of the United States, consisting of the Senate and the House of Representatives.

Chapter 13

A form of bankruptcy in the United States that allows individuals with a regular income to develop a plan to repay all or part of their debts.

Repayment Plan

A strategy or arrangement agreed upon to pay back borrowed money, often detailing the time frame and amounts due.