If the price index in period 2 is 109 and the price index in period 3 is 125, the rate of inflation between period 2 and period 3 is
A) 16.0%.
B) 14.7%.
C) 9.0%.
D) 8.7%.

Question

Quizplus · Accepted Answer

The formula to calculate the rate of inflation is: (Price index in period 3 - Price index in period 2) / Price index in period 2 * 100

Plugging in the values, we get: (125-109)/109 * 100 = 14.7%

Therefore, the correct answer is B) 14.7%.

If the Price Index in Period 2 Is 109 and the Price