Question 7 Quarter CPI Not yet answered Sep-2016 109.4 Marked out of Dec-2016 110.0 1.00 Mar-2017 110.5 Flag Jun-2017 110.7 question Sep-2017 111.4 Dec-2017 112.1 Mar-2018 112.6 Jun-2018 113.0 Sep-2018 113.5 Dec-2018 114.1 The table above illustrates the Australian CPI from the 3rd quarter of 2016 until the last quarter of 2018. Martha claims the non- annualised inflation rate in the last quarter of 2018 (4Q2018) was 0.53% pa, whereas Luke claims it was 1.78% pa. Assume both used an inflation rate of: The = CPIt - CPIt-i vi > 1 CPIt-j Choose the best alternative: Select one: O a. Martha is correct if we are talking about the inflation rate over the year, i.e., from 4Q2017 to 4Q2018. O b. Luke is correct if we are talking about the inflation rate over the December quarter, i.e., from 3Q2018 to 4Q2018. O c. Neither Martha nor Luke is correct, no matter which period is considered. O d. Both Martha and Luke are correct, no matter which period is considered. O e. All the other alternatives are incorrect