Suppose That the Data in the Following Table Reflects the Prices

question 187

Multiple Choice

Suppose that the data in the following table reflects the prices in the economy.What is the inflation rate in between 2017 and 2018? $$\begin{array} { | c | c | } \hline \text { Year } & \text { CPI } \\& ( \mathbf { 1 9 9 0 } = \mathbf { 1 0 0 } ) \\\hline 2017 & 175 \\\hline 2018 & 180 \\\hline\end{array}$$

• A) 5%
• B) 2.9%
• C) 4.6%
• D) 7.5%

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Defensive Measure

Tactics employed by a company to prevent or defend against hostile takeover attempts.

Tender Offer

A public offer to purchase a large number of shares from a company's shareholders, usually at a premium to the market price.

Preemptive Merger

A strategy where a company merges with or acquires another firm to prevent competitors from doing so, often to maintain its competitive advantage or market share.