Suppose rate of inflation for some specific year was 10 percent.If the CPI for that year was 139.7, the previous year's CPI must have been:
A)100.0.
B)129.7.
C)153.7.
D)127.0.

Name: Suppose rate of inflation for some specific year was 10 percent.If the CPI for that year was 139.7, the previous year's CPI must have been: A)100.0. B)129.7. C)153.7. D)127.0.
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Question

Quizplus · Accepted Answer

To find the previous year's CPI, divide the current year's CPI by 1 plus the inflation rate (expressed as a decimal). So, 139.7 / 1.10 = 127.0.

Suppose Rate of Inflation for Some Specific Year Was 10