If the CPI Is Currently 202,what Does This Tell You

question 164

Multiple Choice

If the CPI is currently 202,what does this tell you about inflation between last year and this year?

• A)There was deflation in the economy between this year and last year.
• B)Inflation in the economy between this year and last year was 2%.
• C)Inflation in the economy between this year and last year was 102%.
• D)The CPI measures only the level of prices in a given year,not the percentage change in prices from one year to the next.

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Definitions:

Stated Value Stock

Stated value stock is an issue of shares that does not have a par value but instead has a nominal stated value assigned by the company.

Preferred Stock

A type of equity security that offers dividends and other advantages before common stock, in the event of liquidation.

Common Shareholders

Individuals or entities that own shares of common stock in a corporation, granting them voting rights and a claim on profits.

Organization Expenses

Costs incurred in the creation of a corporation or partnership, such as legal fees and state filing fees, often amortized over time.