How Does a Rise in the Consumer Price Index Affect

question 140

Multiple Choice

How does a rise in the consumer price index affect a typical family?

• A) The typical family has to spend more dollars to maintain the same standard of living.
• B) The typical family can spend fewer dollars to maintain the same standard of living.
• C) The typical family finds that its standard of living is not affected.
• D) The typical family can offset the effects of rising prices by saving more.

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Definitions:

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