Multiple Choice
If a market basket was defined in 2014 and it cost $10,000 to purchase the items in that basket in 2014, while it cost $12,000 to purchase those identical goods in 2015, then the inflation rate from 2005 to 2006 is
A) (100-100) /100*100%=0%.
B) (100-83.3) /100*100%=16.7%.
C) (120-100) /100*100%=20%.
D) unknown given this data.
Correct Answer:
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