Exhibit 13-2 Consumer Price Index

-As shown in Exhibit 13-2,the rate of inflation for Year 4 is:
A) 5 percent.
B) 10 percent.
C) 19 percent.
D) 20 percent.
E) 25 percent.

Name: Exhibit 13-2 Consumer Price Index -As shown in Exhibit 13-2,the rate of inflation for Year 4 is: A) 5 percent. B) 10 percent. C) 19 percent. D) 20 percent. E) 25 percent.
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Question

Exhibit 13-2 Consumer Price Index
 
-As shown in Exhibit 13-2,the rate of inflation for Year 4 is:
A) 5 percent. 
B) 10 percent. 
C) 19 percent. 
D) 20 percent. 
E) 25 percent.

Quizplus · Accepted Answer

The rate of inflation for Year 4 is calculated as (CPI for Year 4 - CPI for Year 3) / CPI for Year 3 * 100 = (120 - 101) / 101 * 100 = 19%.