If the Consumer Price Index Was 170 in One Year

question 33

Multiple Choice

If the Consumer Price Index was 170 in one year and 180 in the next year, then the rate of inflation was approximately

• A) 5.5 percent.
• B) 5.9 percent.
• C) 6.3 percent.
• D) 7.2 percent.

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Definitions:

Revenue Accounts

These accounts track the income earned by a company from its sales or services before any deductions are made.

Expense Accounts

Accounts used to track money spent or costs incurred by a business in its operational activities.

Capital Accounts

Accounts that represent the ownership interest of investors in a company or partnership's total capital.

Capital Balances

Refers to the amounts recorded in the equity section of a company's balance sheet, representing the funds contributed by owners plus retained earnings.