When the cost of living increases,as measured by the consumer price index,

Question

Quizplus · Accepted Answer

The consumer price index measures the average change over time in the prices paid by urban consumers for a basket of goods and services. When the cost of living increases, it means that the prices of goods and services have gone up, therefore the value of the dollar has decreased. This means that you will need more dollars to buy the same amount of goods and services as before. Therefore, D is the correct answer.

When the Cost of Living Increases,as Measured by the Consumer