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If the Price Index in Period 3 Is 125 and the Price

Question 146

Multiple Choice

If the price index in period 3 is 125 and the price index in period 4 is 140, the rate of inflation between period 3 and period 4

A) is 12%.
B) is 15%.
C) is 10.7%.
D) cannot be determined from this information because the base year is not known.

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