Exhibit 22-3
-According to the data in Exhibit 22-3, the rate of inflation between 2007 and 2008 was
A) 4.3 percent.
B) 2.2 percent.
C) 1.1 percent.
D) 0 percent.
E) -3.1 percent.

Question

Exhibit 22-3 
-According to the data in Exhibit 22-3, the rate of inflation between 2007 and 2008 was
A) 4.3 percent. 
B) 2.2 percent. 
C) 1.1 percent. 
D) 0 percent. 
E) -3.1 percent.

Quizplus · Accepted Answer

The rate of inflation is calculated by comparing the CPI (consumer price index) from one year to the next. In this case, the CPI in 2007 was 207.3 and in 2008 it was 211.4. To find the rate of inflation, you divide the difference (211.4 - 207.3 = 4.1) by the base year (207.3) and multiply by 100. This gives us (4.1/207.3) x 100 = 1.98%. Rounded to one decimal place, the correct answer is B) 2.2%.

Exhibit 22-3 -According to the Data in Exhibit 22-3, the Rate of the Rate