Use the Following to Answer Questions: Table: Consumer Price Index

question 154

Multiple Choice

Use the following to answer questions: Table: Consumer Price Index $$\begin{array} { l c } \hline \text { Year } & \begin{array} { l } \text { CPI } \\\text { (End-of-Yea } \\\text { r Value) }\end{array} \\\hline 2005 & 195.3 \\2006 & 201.6 \\2007 & 207.3 \\2008 & 215.3 \\2009 & 214.5 \\2010 & 218.1 \\\hline\end{array}$$
-(Table: Consumer Price Index) Refer to the CPI values in the table for the years 2005 to 2010. What was the approximate inflation rate over the period 2007 to 2008?

• A) 8.00%
• B) 21.53%
• C) 3.86%
• D) 3.72%

---

Definitions:

Diversification

The strategy of investing in a variety of securities in order to lower the risk involved with putting money into few investments.

Flood Insurance Premiums

The payments made periodically to an insurance company in exchange for coverage against loss or damage caused by flooding.

Positive Correlation

A relationship between two variables where they move in the same direction, meaning as one variable increases, so does the other.

Organized-Gambling Venues

Places such as casinos or sports betting facilities where gambling activities are regulated and officially sanctioned.