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 2012 has been selected as the base year.In 2012,the basket's cost was $77;in 2013,the basket's cost was $82;and in 2014,the basket's cost was $90.The value of the CPI in 2014 was

A) 109.8 and the inflation rate was 9.8%.
B) 109.8 and the inflation rate was 16.9%.
C) 116.9 and the inflation rate was 9.8%.
D) 116.9 and the inflation rate was 16.9%.