A student's basket costs $100 in period 1 and $106.50 in period 2. The…

Question

A student's basket costs $100 in period 1 and $106.50 in period 2. The inflation rate is:

Accepted Answer

B. 6.5%

1. Find the percentage change.
2. 6.50 over 100 is 6.5 percent.
3. Period 3 to 4 was 9.8 percent.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 8, Inflation (CC BY 4.0)._

Answer

9.8%

Answer

10%

Answer

0.5%

A student's basket costs $100 in period 1 and $106.50 in period 2. The inflation rate is:

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