Narrbegin Exhibit 13 -As Shown in Exhibit 13

question 32

Multiple Choice

Narrbegin Exhibit 13.1 Consumer price index
$$\begin{array} {| c | c |} \hline \text { Year } & \text { Consumer price index } \\\hline 1 & 100 \\\hline 2 & 100 \\\hline 3 & 105 \\\hline 4 & 125 \\\hline 5 & 150 \\\hline\end{array}$$
-As shown in Exhibit 13.1, the rate of inflation for Year 4 is:

• A) 5 per cent.
• B) 10 per cent.
• C) 19 per cent.
• D) 20 per cent.

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Definitions:

Food Expenditures

The amount of money spent by households or individuals on food products, either at home or in dining establishments.

Nominal Box Office Receipts

The total amount of money earned from ticket sales for movies at theaters, not adjusted for inflation.

Prices

The cash amount predicted, necessary, or offered as compensation for something.

Real Interest Rate

The interest rate that has been adjusted to remove the effects of inflation, representing the true cost of borrowing and the true yield on investing.