If the Consumer Price Index in 2008 was 150 and the CPI in 2009 was 165,the rate of inflation between 2008 and 2009 would be
A)9.09 percent.
B)10 percent.
C)15 percent.
D)110 percent.

Question

Quizplus · Accepted Answer

To calculate the rate of inflation, we use the formula:

Rate of Inflation = ((CPI in the current year - CPI in the previous year) / CPI in the previous year) x 100

Using this formula, we get:

Rate of Inflation = ((165-150) / 150) x 100
= (15/150) x 100
= 0.1 x 100
= 10%

Therefore, the rate of inflation between 2008 and 2009 is 10%. So, the correct answer is B) 10 percent.

If the Consumer Price Index in 2008 Was 150 and the CPI