Over the period of 1926 to 2005 in the US,the average rate of inflation was _____ %.
A)2.0
B)2.7
C)3.1
D)3.8
E)4.3

Question

Quizplus · Accepted Answer

The average rate of inflation in the US from 1926 to 2005 was 3.1% as per the historical data. This can be calculated using the Consumer Price Index (CPI) which measures the average change in prices of goods and services over time. The CPI for the period of 1926 to 2005 increased from 17.5 to 198.3, which represents a cumulative increase of 1036.6%. Dividing this by the number of years in the period (80) gives an average annual inflation rate of 3.1%.

Over the Period of 1926 to 2005 in the US,the