If the CPI Was 180 at the End of 2016

question 69

Multiple Choice

If the CPI was 180 at the end of 2016, and 216 at the end of 2017, the inflation rate in 2017 was

• A)18 percent.
• B)216 percent.
• C)36 percent.
• D)16.67 percent.
• E)20 percent.

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Definitions:

Medium of Exchange

An intermediary instrument or system used to facilitate the sale, purchase, or trade of goods between parties.

Measure of Value

A function of a medium of exchange that allows it to serve as a common denominator to express the value of goods and services.

Demand Deposits

Bank accounts from which deposited funds can be withdrawn at any time without any notice to the institution, such as checking accounts.

Fed

Refers to the Federal Reserve System, which is the central banking system of the United States, responsible for monetary policy.