If the CPI rises to 150 from 120, then prices have

A) risen 20 percent.

B) risen 25 percent.

C) risen 30 percent.

D) fallen 20 percent.

Question

Beatrice Carpenter

Business

3 August, 13:49

If the CPI rises to 150 from 120, then prices have

A) risen 20 percent.

B) risen 25 percent.

C) risen 30 percent.

D) fallen 20 percent.

+1

Answers (1)

Know the Answer?

Alessandro Ramirez · Answer 1

B) risen 25 percent.

Explanation:

The inflation rate is the rate at which overall prices are increasing in the economy in a period. It is expressed as a CPI value.

Given CPI for different periods, inflation can be calculated using the formula below.

Inflation = new CPI - old CPI x 100

old CPI

In the case

The inflation rate will be 150 - 120 x 100

120

=30/120 x 100

=25%

If the CPI rises to 150 from 120, then prices haveA) risen 20 percent.B) risen 25 percent.C) risen 30 percent.D) fallen 20 percent.

If the CPI rises to 150 from 120, then prices have

A) risen 20 percent.

B) risen 25 percent.

C) risen 30 percent.

D) fallen 20 percent.