-Refer to Table 6.13. If 2000 is the base year, the inflation rate between 1999 and 2001 is:
A) 9%.
B) 114%.
C) 1.4%.
D) 14%.

Question

-Refer to Table 6.13. If 2000 is the base year, the inflation rate between 1999 and 2001 is:
A) 9%. 
B) 114%. 
C) 1.4%. 
D) 14%.

Quizplus · Accepted Answer

The inflation rate is calculated by finding the percentage change in the price index from 1999 to 2001. If 2000 is the base year, the price index for 2000 is 100. Assuming the price index for 1999 is lower and for 2001 is higher, the percentage change from 1999 to 2001 is 14%.