If the Price Index Rises from 100 to 130, Then

question 7

Multiple Choice

If the price index rises from 100 to 130, then the purchasing power of the dollar will fall by about

• A) 15 percent.
• B) 19 percent.
• C) 23 percent.
• D) 30 percent.

---

Definitions:

Assets

Resources owned by a business or individual with economic value or future benefits.

Sales Offer

A promotional or sales activity making a specific proposal to entice customers to buy a product or service.

Goods

Physical items that are sold or traded, typically manufactured products or raw materials.

Business Transaction

An economic event with a third party that is recorded in an organization's accounting system.