Which of the Following Formulas Is Used to Calculate the Inflation

question 27

Multiple Choice

Which of the following formulas is used to calculate the inflation rate?

• A) inflation rate \( =100 \times\left(\frac{\text { CPI in current year }}{\text { CPI in base period }}\right) \)
• B) inflation rate \( =100 \times\left(\frac{\text { CPI in previous year }}{\text { CPI in current year }}\right) \)
• C) Inflation rate \( =100 \times\left(\frac{\text { CPI in base year }}{\text { CPI in current year }}\right) \)
• D) Inflation rate \( =100 \times\left(\frac{\text { CPI in current year-CPI in previous year }}{\text { CPI in previous year }}\right) \)
• E) Inflation rate \( =100 \times\left(\frac{C P I \text { in previous year-CPI in current year }}{\text { CPI in current year }}\right) \)

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Definitions:

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