Which of the following statements is true?
A) Base year prices are necessarily higher than current year prices.
B) The CPI in the base year is 100.
C) If the CPI is 112 in year 1 and 123 in year 2, prices have risen by approximately 9.8 percent between the two years.
D) b and c
E) a, b, and c

Question

Quizplus · Accepted Answer

Option A is false because base year prices can be lower or higher than current year prices. 
Option B is true by definition. 
Option C is almost true, but the correct percentage increase is approximately 9.8%. 
Hence, only option D is correct.

Which of the Following Statements Is True