A nation reports that its Consumer Price Index rose from 240 to 252 over one year. What is the approximate inflation rate for that period?

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Multiple choice — select the best answer

A4.8%
B12.0%
C5.0%
D6.0%

✓ Correct answer: C. 5.0% The inflation rate is calculated as (252 - 240) / 240 = 12 / 240 = 0.05, or exactly 5.0%, representing the percentage change in the price level over the period.

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Topic: Uniform Investment Adviser Law

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A nation reports that its Consumer Price Index rose from 240 to 252 over one year. What is the approximate inflation rate for that period?

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