Suppose in Year 1 the CPI Is 90,in Year 2

question 168

Multiple Choice

Suppose in year 1 the CPI is 90,in year 2 the CPI is 100,and in year 3 the CPI is 110.Then,inflation is

• A)100 percent in year 1.
• B)11 percent between years 1 and 2.
• C)11 percent between years 2 and 3.
• D)10 percent between years 2 and 3.
• E)Both answers B and D are correct.

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