If the CPI Is 120 in 2002 and 180 in 2012

question 105

Multiple Choice

If the CPI is 120 in 2002 and 180 in 2012, then between 2002 and 2012, prices have increased by ________.

• A) 180 percent
• B) 80 percent
• C) 60 percent
• D) 50 percent

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Definitions:

Rate Of Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Supply And Demand

The relationship between the quantity of a commodity available and the desire for that commodity, determining its market price.

Interest Rate

The proportion of a total amount of money that is levied for borrowing it, commonly stated as a yearly percentage rate.

Loanable Funds

The money available for borrowing, which comes from savings and is demanded by borrowers for investment.