If a country's consumer price index (CPI) was 104.2 in Year 1, while the inflation rate for Year 2 was 4.89%, then the CPI in Year 2 was:

(a) 106.5;
(b) 108.5;
(c) 109.3;
(d) 111.5.


Answer: (c) 109.3;

Economics

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