If the CPI for This Year Is 220 and the CPI

question 388

Multiple Choice

If the CPI for this year is 220 and the CPI for last year was 215, the inflation rate is

• A) just over 2 percent.
• B) 5 percent.
• C) just over 5 percent.
• D) 10 percent.

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Definitions:

Net Income

The amount of profit left after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from total revenues.

Additional Investment

Funds invested into a business by its owners or shareholders over and above the initial investment.

Income Statement

A financial statement that reports a company's revenues, expenses, and profits over a specific period, showing the financial performance of the business.

Statement Of Owner's Equity

A financial document showing changes in the equity of a company over a certain period due to various business activities, such as earnings and withdrawals.