For an imaginary economy, the value of the consumer price index was 140 in 2006 and 149.10 in 2007. The economy's inflation rate for 2007 was

Question

Quizplus · Accepted Answer

The inflation rate for the economy can be calculated using the formula: ((CPI in the current year - CPI in the previous year) / CPI in the previous year) * 100.

Using this formula, we get: ((149.10 - 140) / 140) * 100 = 6.5%.

Therefore, the answer is B) 6.5 percent.

For an Imaginary Economy, the Value of the Consumer Price