The Price Index Was 110 in the First Year, 100

Multiple Choice

The price index was 110 in the first year, 100 in the second year, and 96 in the third year. The economy experienced

A) 9.1 percent deflation between the first and second years, and 4 percent deflation between the second and third years.
B) 9.1 percent deflation between the first and second years, and 4.2 percent deflation between the second and third years.
C) 10 percent deflation between the first and second years, and 4 percent deflation between the second and third years.
D) 10 percent deflation between the first and second years, and 4.2 percent deflation between the second and third years.