Suppose the CPI Last Year Is 121 and the CPI

question 331

Multiple Choice

Suppose the CPI last year is 121 and the CPI this year is 137.The correct method to calculate the inflation rate is

• A) (137 - 121)/100 = 0.16.
• B) 137 × 121 = 258.
• C) [(137 - 121)/121] × 100 = 13.2.
• D) (137/121) × 100 = 113.2.

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Definitions:

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