Between 2017 and 2018,the CPI of a small nation rose from 182 to 185.If household incomes rose by 3% during that period of time,which of the following is true?
A) The purchasing power of household income rose between 2017 and 2018.
B) The purchasing power of household income fell between 2017 and 2018.
C) The purchasing power of household income remained constant between 2017 and 2018.
D) The CPI cannot be used to determine how the purchasing power of household income changes over time.
Correct Answer:
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