The CPI in year one equaled 1.45. The CPI in year two equaled 1.51. The rate of inflation between years one and two was ________ percent.
A)4.0
B)4.1
C)4.5
D)6.0

Name: The CPI in year one equaled 1.45. The CPI in year two equaled 1.51. The rate of inflation between years one and two was ________ percent. A)4.0 B)4.1 C)4.5 D)6.0
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Question

Quizplus · Accepted Answer

The percentage change in CPI is calculated as: (current price index - historic prices)/ historic price index. In this case: (1.51 - 1.45)/ 1.45 = 0.041, or 4.1 percent.

The CPI in Year One Equaled 1