Table 23-3 -Refer to Table 23-3.Using the GDP Deflator to Measure the Deflator

question 143

Multiple Choice

Table 23-3

-Refer to Table 23-3.Using the GDP deflator to measure the average level of prices and using 2006 as the base year,the economy's inflation rate is

• A)20 percent for 2007 and 12.5 percent for 2008.
• B)20 percent for 2007 and 30 percent for 2008.
• C)25 percent for 2007 and 28 percent for 2008.
• D)44.7 percent for 2007 and 45.5 percent for 2008.

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Definitions:

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount to raise immediate capital.

Turning Receivables

Involves managing and collecting funds owed to a business by its customers within a given period.

Credit Profile

A summary or analysis of an individual's or entity's credit history and current financial status used by lenders to gauge creditworthiness.

Trade Creditors

Suppliers or vendors that allow businesses to buy goods or services on account, paying them at a later date.