The Consumer Price Index Was 200 in 2012 and 208

question 10

Multiple Choice

The consumer price index was 200 in 2012 and 208 in 2013.The nominal interest rate during this period was 9 percent.What was the real interest rate during this period?

• A)5.00 percent
• B)1.00 percent
• C)5.15 percent
• D)13.00 percent

---

Definitions:

Net Income

The net income a company earns once all costs and taxes are subtracted from its total revenue.

Contribution Margin

This measure reflects the amount of revenue per unit that exceeds the variable costs of the unit, contributing to covering fixed costs and generating profit.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, ending with net profit or loss.

Fixed Cost

Regular, unwavering expenses in business operations that do not fluctuate with changes in production level or sales volume.