If This Year's Price Level Is 126 and Last Year's

question 289

Multiple Choice

If this year's price level is 126 and last year's price level was 120, the inflation rate is

• A) 0.95 percent a year.
• B) 5 percent a year.
• C) 6 percent a year.
• D) 1.05 percent a year.

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Definitions:

Incorporated

Refers to the process of legally declaring a business as a separate legal entity, distinct from its owners, with rights to own property and sue or be sued.

Creature of the State

An entity that is created by and subject to state law, often used to describe municipalities or corporations.

Incorporation Statute

An Incorporation Statute is a law that outlines the process, requirements, and legal implications of forming a corporation.

Perpetual Existence

A characteristic of certain business entities, such as corporations, indicating they can continue indefinitely unless dissolved.