If the CPI Was 125 This Year and 120 Last

question 102

Multiple Choice

If the CPI was 125 this year and 120 last year,then

• A)the cost of the CPI basket of goods and services increased by 4.2 percent this year.
• B)the price level increased by 4.2 percent this year.
• C)the inflation rate for this year was 4.2 percent.
• D)All of the above are correct.

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Definitions:

Decentralized

Refers to the distribution of functions, powers, people, or things away from a central location or authority.

Consolidated

Combined financial statements that present the assets, liabilities, and operating results of parent companies and their subsidiaries as a single entity.

Diversified

A risk management strategy that involves spreading investments across various financial instruments, industries, or other categories to reduce risk.

Responsibility Centers

These are parts or segments of a business for which individual managers are responsible, usually in terms of costs, revenues, or investment.