Which of the following statements is false?
A) Inflation is a general rise in the level of prices.
B) Inflation can affect an individual's purchasing power when money is used as a store of value.
C) The consumer price index is based on two factors: the cost of housing and the cost of transportation.
D) The consumer price index measures the changes in prices of goods purchased by a typical consumer.
E) The base amount for the consumer price index is 100.

Question

Quizplus · Accepted Answer

The consumer price index is based on more than just the cost of housing and transportation, it includes a basket of goods and services commonly purchased by consumers. The false statement is that the consumer price index is based on only two factors.

Which of the Following Statements Is False