The CPI in year one equaled 1.55. The CPI in year two equaled 1.64. The rate of inflation between years one and two was ________ percent.
A)4.0
B)5.8
C)6.4
D)9.0

Name: The CPI in year one equaled 1.55. The CPI in year two equaled 1.64. The rate of inflation between years one and two was ________ percent. A)4.0 B)5.8 C)6.4 D)9.0
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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: (1.64 - 1.55)/ 1.55 = 0.058, or 5.8 percent.

The CPI in Year One Equaled 1