Of the following sequences of price levels, which correctly represents a 5 percent inflation rate?
A. 100, 100, 100, 100
B. 100, 105, 105, 105
C. 100, 105, 110, 115
D. 100, 105, 110.25, 115.76
Answer:D
Of the following sequences of price levels, which correctly represents a 5 percent inflation rate?
A. 100, 100, 100, 100 B. 100, 105, 105, 105 C. 100, 105, 110, 115 D. 100, 105, 110.25, 115.76