If the CPI changes from 120 in one year to 126 the next, the rate of inflation over that time period is
A) 5%.
B) 6%.
C) 105%
D) 1.05%.

Name: If the CPI changes from 120 in one year to 126 the next, the rate of inflation over that time period is A) 5%. B) 6%. C) 105% D) 1.05%.
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Question

Quizplus · Accepted Answer

The rate of inflation is calculated as the percentage change in the CPI, which is (126 - 120) / 120 = 0.05, or 5%.

If the CPI Changes from 120 in One Year to 126