IDNLearn.com offers a reliable platform for finding accurate and timely answers. Get comprehensive answers to all your questions from our network of experienced experts.

Suppose the consumer price index (CPI) stands at 240 this year. If the inflation rate is 5 percent, then next year's CPI will equal:______

a. 245.
b. 250.
c. 252
d. 264.


Sagot :

Answer:

c. 252

Explanation:

Calculation of what the next year's CPI will equal

Using this formula

Next year's CPI=[Consumer price index (CPI) +(Consumer price index (CPI) *Inflation rate

Let plug in the formula

Next year's CPI=[240+(240*5%)]

Next year's CPI=240+12

Next year's CPI=252.

Therefore the next year's CPI will equal 252