At the End of Last Year, the CPI Equaled 120

question 127

Multiple Choice

At the end of last year, the CPI equaled 120. At the end of this year, the CPI equals 132. What is the inflation rate over this year?

• A) 10 percent
• B) 12 percent
• C) 6 percent
• D) None of the above answers are correct because more information is needed to calculate the inflation rate.

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Definitions:

Inheritance Taxes

Taxes imposed on the transfer of property, money, or assets from a deceased person to their heirs or beneficiaries.

Excise Taxes

Taxes imposed on specific goods, services, or activities, often aimed at discouraging their use or raising revenue.

National Defense

Governmental and military actions and strategies aimed at protecting a country from external threats and maintaining national security.

Postal Service

A government or private company service responsible for collecting, transporting, and delivering mail and packages to recipients.