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16 January, 11:02

A consumer survey conducted in two consecutive years found that a fixed basket of goods and services cost $36.00 in year 1 and $36.75 in year 2. The rate of inflation from year 1 to year 2 is

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  1. 16 January, 11:24
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    0.021/yr or 2.1%/yr

    Step-by-step explanation:

    Find the quotient:

    $36.75/$36.00

    This comes out to 1.021,

    so the inflation rate is 1.021 - 1.000 = 0.021 or 2.1%/year
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