if the price level increased from 120 to 130, then what was the inflation rate?\n1.1 percent.\n7.7…

if the price level increased from 120 to 130, then what was the inflation rate?\n1.1 percent.\n7.7 percent.\n10.0 percent.\n8.3 percent.

if the price level increased from 120 to 130, then what was the inflation rate?\n1.1 percent.\n7.7 percent.\n10.0 percent.\n8.3 percent.

Answer

Explanation:

Step1: Recall inflation - rate formula

The formula for the inflation rate is $\text{Inflation rate}=\frac{\text{New price level}-\text{Old price level}}{\text{Old price level}}\times100%$.

Step2: Substitute values

Here, the old price level is 120 and the new price level is 130. So, $\text{Inflation rate}=\frac{130 - 120}{120}\times100%=\frac{10}{120}\times100%$.

Step3: Calculate the result

$\frac{10}{120}\times100%=\frac{1000}{120}% \approx 8.3%$.

Answer:

D. 8.3 percent