In 1949, the inflation rate in the United States was -2%. If a car cost $1500 at the beginning of the year, what did it cost at the end of the year?
A)$1200
B)$1470
C)$1497
D)$1350

Question

Quizplus · Accepted Answer

A -2% inflation rate indicates deflation, meaning prices decreased by 2%. Therefore, the car's price at the end of the year would be $1500 - (2% of $1500) = $1500 - $30 = $1470.

In 1949, the Inflation Rate in the United States Was