How does a rise in the consumer price index affect a typical family?
A) The typical family has to spend more dollars to maintain the same standard of living.
B) The typical family can spend fewer dollars to maintain the same standard of living.
C) The typical family finds that its standard of living is not affected.
D) The typical family can offset the effects of rising prices by saving more.

Question

Quizplus · Accepted Answer

A rise in the consumer price index means that prices for goods and services have increased. This means that the typical family has to spend more dollars to maintain the same standard of living. For example, if groceries or gas prices increase, the family will have to spend more money on these essential items, leaving less money for other expenses or savings.

How Does a Rise in the Consumer Price Index Affect