You Know That the Consumer Price Index (CPI)at the Beginning

Multiple Choice

You know that the consumer price index (CPI) at the beginning of this year was 250 and the rate of inflation was 14 percent; this would mean the

A) price of cat food increased by exactly 14 percent.
B) CPI at the beginning of last year was 215.
C) price of dog food probably fell.
D) CPI at the end of the year was 285.
E) rate of inflation next year will be more than 14 percent.