If the Consumer Price Index Changes from 125 in September

question 109

Multiple Choice

If the consumer price index changes from 125 in September to 150 in October,what is the rate of inflation?

• A)45.5%
• B)20.0%
• C)16.7%
• D)9.1%

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Definitions:

Soft Rationing

Internal limitations set by a company on the amount of funds allocated for new investments or projects.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, demonstrating the proportion of fixed versus variable costs a company has.

Fixed Costs

Expenses that remain constant regardless of how much is produced or sold, including rent, salaries, and insurance costs.

Accounting Break-Even

The point where total sales equal total expenses, and the company makes no profit but also incurs no loss.