If the CPI This Year Is 220 and Was 200

question 100

Multiple Choice

If the CPI this year is 220 and was 200 in last year, the annual inflation rate between the two years is

• A) 5 percent.
• B) 10 percent.
• C) 20 percent.
• D) 2 percent.

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Definitions:

Interest Rate

The interest rate is the percentage of the principal charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage.

Years From Now

A temporal reference indicating a certain amount of time in the future from the current point.

Real Wages

Nominal wages corrected for inflation.

Money Wages

The current dollar amount of a person’s wages.