If a Country Had a CPI of 105

question 95

Multiple Choice

If a country had a CPI of 105.0 last year and a CPI of 102.0 this year,then

• A)the average prices of goods and services increased between last year and this year.
• B)the average prices of goods and services decreased between last year and this year.
• C)the average quality of goods and services decreased between last year and this year.
• D)there was an error when calculating the CPI this year.
• E)the quantity of consumer goods and services produced decreased between last year and this year.

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Definitions:

Cash Flow Statement

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company.

Common Stock

A type of equity security that represents ownership in a corporation and entitles the holder to a claim on part of the company's profits in the form of dividends.

Financing Activities

Transactions involving long-term liabilities, stockholder's equity, and changes in short-term loans that impact a company's capital structure.

Treasury Stock

Refers to shares that were once part of the outstanding shares and have been bought back by the issuing company.