The Rate of Inflation Measures the Percentage Increase in the Price

question 47

Multiple Choice

The rate of inflation measures the percentage increase in the price of consumer goods. The rate of inflation from the year 2005 to 2007 was 5%. Suppose that this rate persisted through 2015. What would be the cost in 2015 of an item that costs $100 in 2005?

• A)$127.63
• B)$135.89
• C)$149.63
• D)$162.89

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Definitions:

Means-Ends

An analysis or approach that focuses on identifying the means to achieve a desired end or goal.

Coordinated

Actions or efforts that are managed in such a way as to ensure efficiency and harmony in achieving a goal.

Effective Control

The process or system put in place to guide activities towards achieving organizational goals efficiently and effectively.

Internal

Occurring or existing within an organization or entity.