Use the Consumer Price Index Below to Answer the Question

question 196

Multiple Choice

Use the Consumer Price Index below to answer the question. $$\begin{array}{l}\text { Average Annual Consumer Price Index } ( 1982 - 1984 = 100 ) \\\begin{array} { c | c | c | c | c | c } \text { Year } & \text { CPI } & \text { Year } & \text { CPI } & \text { Year } & \text { CPI } \\\hline 1986 & 109.6 & 1995 & 152.4 & 2004 & 188.9 \\1987 & 113.6 & 1996 & 156.9 & 2005 & 195.3 \\1988 & 118.3 & 1997 & 160.5 & 2006 & 201.6 \\1989 & 124.0 & 1998 & 163.0 & 2007 & 207.3 \\1990 & 130.7 & 1999 & 166.6 & 2008 & 215.3 \\1991 & 136.2 & 2000 & 172.2 & 2009 & 214.5 \\1992 & 140.3 & 2001 & 177.1 & 2010 & 218.1 \\1993 & 144.5 & 2002 & 179.9 & 2011 & 224.9 \\1994 & 148.2 & 2003 & 184.0 & 2012 & 229.6\end{array}\end{array}$$
-Find the inflation rate from 1990 to 1991.

• A)4.6%
• B)4.2%
• C)4.0%
• D)1.0%

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Definitions:

Zero-Coupon Bond

A debt security that does not pay interest (coupon) during its life but is sold at a discount from its face value, with the total face value being paid to the holder at maturity.

Tax Bracket

The range of income taxed at a specific rate within a progressive tax system, affecting how much tax individuals or entities owe based on their income.

Yield

The income returned on an investment, expressed as a percentage of the cost of the investment.

Treasury Bond

A long-term, fixed-interest government debt security with a maturity of more than 10 years issued by the U.S. Department of the Treasury.