MCQ Novenber 2004 Paper 1 Question 25

[arvind0708]

25 The figures show the consumer price index (CPI) of a country. (1971 = 100)
CPI
1998 200
1999 204
2000 206
2001 209
What can be deduced from the data?
A There was hyperinflation between 1971 and 1998.
B The rate of inflation rose in 2000.
C The rate of inflation in 1999 was 4 %.
D The country experienced inflation in the three years down to the end of 2001

What is the answer for this question.What calculation should be done to get the answer.

 

[Xenon]

U don't need much calculation here. The CPI is increasing and this indicates that inflation is rising all the way till 2001. D, therefore, is the correct option.