Suppose the consumer price index (CPI)stands at 250 this year.If the inflation rate is 10 percent,then next year's CPI will equal
A)250.
B)260.
C)275.
D)500.

Name: Suppose the consumer price index (CPI)stands at 250 this year.If the inflation rate is 10 percent,then next year's CPI will equal A)250. B)260. C)275. D)500.
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Since the inflation rate is 10%, the CPI for next year will be 10% higher than the current year's CPI. Therefore, next year's CPI will be 250 + (10% of 250) = 275.

Suppose the Consumer Price Index (CPI)stands at 250 This Year