If the Price Level Last Year Was 110 and This

question 10

Multiple Choice

If the price level last year was 110 and this year is 118, then the inflation rate between last period and this period was:

• A)7.3%.
• B)7%.
• C)8%
• D)6.8%.

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Definitions:

Net Income

A calculation that determines a company's profit by deducting total expenses from total revenues, serving as an essential indicator of financial health.

Investing Activities

Part of a company's cash flow statement that reports the purchase and sale of long-term investments and property, plant, and equipment.

Financing Activities

Transactions involving external sources of funding for a company, including debt, equity, and dividend payments.

Operating Activities

These are the core activities that a business performs to generate revenue, such as production, distribution, marketing, and sales.