If a price index increased from 400 to 440 over the course of a year, then the inflation rate is:
A) 4%.
B) 9%.
C) 10%.
D) 40%.

Name: If a price index increased from 400 to 440 over the course of a year, then the inflation rate is: A) 4%. B) 9%. C) 10%. D) 40%.
Brand: Quizplus
Rating: 4.9 (42 reviews)

Question

Quizplus · Accepted Answer

The formula for calculating inflation rate is: 
(Increase in Price Index / Initial Price Index) x 100

Plugging in the values, we get: 
(440 - 400 / 400) x 100 = 10%

Therefore, the correct answer is option C) 10%.

If a Price Index Increased from 400 to 440 Over