Which of the Following Is Correct

question 134

Multiple Choice

Which of the following is correct?

• A)The GDP deflator is better than the CPI at reflecting the goods and services bought by consumers.
• B)The CPI is better than the GDP deflator at reflecting the goods and services bought by consumers.
• C)The GDP deflator and the CPI are equally good at reflecting the goods and services bought by consumers.
• D)The GDP deflator is more commonly used as a gauge of inflation than the CPI is.

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Definitions:

Intragroup Transaction

Financial transactions that occur between two entities within the same group, not affecting the financial position of the group as a whole when consolidated.

NCI Adjustment

An adjustment in consolidated financial statements to reflect the share of equity interest that is not owned by the parent company's shareholders.

Retained Earnings

Retained earnings are the portion of a company's profits that are kept or retained by the company for reinvestment in its operations, rather than being distributed to its shareholders as dividends.

Tax Rate

The percentage at which an individual or corporation is taxed.