Suppose a Basket of Goods and Services Has Been Selected

Multiple Choice

Suppose a basket of goods and services has been selected to calculate the CPI and 2014 has been selected as the base year.In 2013,the basket's cost was $80;in 2014,the basket's cost was $86;and in 2015,the basket's cost was $90.The value of the CPI in 2015 was

A) 112.5 and the inflation rate was 12.5%.
B) 112.5 and the inflation rate was 4.6%.
C) 104.6 and the inflation rate was 4.6%.
D) 104.6 and the inflation rate was 12.5%.