Ask Question
13 June, 01:14

When the Consumer Price Index falls from 110 to 100a. there is inflation of 9.1% and the value of money decreases. b. there is deflation of 9.1% and the value of money increases. c. there is deflation of 10% and the value of money increases. d. there is inflation of 10% and the value of money decreases.

+2
Answers (1)
  1. 13 June, 01:25
    0
    Option (b) is correct.

    Explanation:

    Inflation rate refers to the rate at which the prices of goods and services are increased.

    Inflation rate:

    = Percentage Change in Consumer Price Index

    = (100 - 110) : 110

    = - 10 : 110

    = - 0.0909, or - 9.09%

    So, this is a Deflation of 9.09% (9.1%), and a deflation means that value of money has increased.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “When the Consumer Price Index falls from 110 to 100a. there is inflation of 9.1% and the value of money decreases. b. there is deflation of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers