If the CPI Equaled 1

question 117

Multiple Choice

If the CPI equaled 1.00 in 2005 and 1.65 in 2015 and a typical household's income equaled $35,000 in 1995 and $40,000 in 2005, then between 2005 and 2015, real household income:

• A)increased.
• B)decreased.
• C)was constant.
• D)may have either increased or decreased.