Suppose the price index was 105 in 2017,126 in 2018,and the inflation rate was lower between 2018 and 2019 than it was between 2017 and 2018.This means that
A)the price index in 2019 was lower than 126.0.
B)the price index in 2019 was lower than 147.0.
C)the price index in 2019 was lower than 151.2.
D)the inflation rate between 2018 and 2019 was lower than 1.2 percent.

Question

Quizplus · Accepted Answer

From 2017 to 2018, the inflation rate can be calculated as (126-105)/105 = 20/105 = 0.1904 or 19.04%
If the inflation rate was lower between 2018 and 2019 than it was between 2017 and 2018, then the price index in 2019 should be lower than 126*(1+19.04%) = 150.144. 
However, since we don't know the exact inflation rate between 2018 and 2019, the best answer is C because it is the only option lower than this value.

Suppose the Price Index Was 105 in 2017,126 in 2018,and