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If the CPI Equals 100 in Year One (The Base

Question 59

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If the CPI equals 100 in year one (the base year) and equals 106 in year two,what can be concluded?


A) The rate of inflation from year one to year two equals +106 percent.
B) The rate of inflation from year one to year two equals -6 percent.
C) The rate of inflation from year one to year two equals +6 percent.
D) National income has increased by 6 percent from year one to year two.

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