In a Particular Economy, the Price Index Was 270 in 2005

question 50

Multiple Choice

In a particular economy, the price index was 270 in 2005 and 300 in 2006. Which of the following statements is correct?

• A)The economy experienced a rising price level between 2005 and 2006.
• B)The economy experienced a higher inflation rate between 2005 and 2006 than it had experienced between 2004 and 2005.
• C)The inflation rate between 2005 and 2006 was 30 percent.
• D)All of the above are correct.

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Definitions:

Minority Shareholders

Investors who own less than 50% of a company's shares, and typically have limited influence over company decisions.

State Corporate Statutes

Laws enacted by states governing the formation, operation, and dissolution of corporations within that state.

Fiduciary Duty

An obligation to act in the best interest of another party, such as the relationship between a trustee and the beneficiaries of the trust.

Breach of Fiduciary Duty

Occurs when an individual in a trusted position fails to act in the best interests of another party whom he or she has a duty to.