Suppose That the Consumer Price Index Was 140

question 38

Multiple Choice

Suppose that the consumer price index was 140.3 in 2012 and 144.5 in 2013.Therefore,the rate of inflation in 2013 was about:

• A) 6.7 percent.
• B) 3.0 percent.
• C) 1.2 percent.
• D) 13.6 percent.

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Definitions:

Stock Prices

The market price at which shares of a public company's stock are bought and sold.

Fed

Short for the Federal Reserve, which is the central banking system of the United States, responsible for monetary policy.

Interest Rates

The cost of borrowing money or the return on investment, expressed as a percentage of the principal.

Wealth Effect

The change in spending behavior by individuals or households due to a change in their wealth, often as a result of asset price changes.