If the Consumer Price Index Changes from 120 to 125

question 71

Multiple Choice

If the consumer price index changes from 120 to 125 between December 2009 and December 2010, the:

• A)inflation rate for 2010 is 4.2%.
• B)inflation rate for 2010 is 5%.
• C)deflation rate for 2010 is 5%.
• D)deflation rate for 2010 is 4.2%.

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Definitions:

Water

A colorless, odorless, tasteless liquid that forms the seas, lakes, rivers, and rain, and is the basis of the fluids of living organisms.

Uni-

A prefix meaning "one" or "single," used to denote singularity or uniqueness in various terms.

Homeo-

A prefix in biology and medicine indicating similarity, sameness, or constancy.

Homeostasis

The ability of a living organism to maintain stable internal conditions despite changes in the external environment.