If the Consumer Price Index (CPI) at the End of Year

question 178

Multiple Choice

If the consumer price index (CPI) at the end of year one was 100 and was 108 at the end of year two, the inflation rate during year two was

• A) zero; the CPI of 100 indicates that prices were stable.
• B) 8 percent.
• C) 5 percent.
• D) 108 percent.

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