If the CPI Equaled 1

question 75

Multiple Choice

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

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

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