contestada

when the consumer price index increases from 100 to 120 a. more money is needed to buy the same amount of goods, so the value of money rises. b. more money is needed to buy the same amount of goods, so the value of money falls. c. less money is needed to buy the same amount of goods, so the value of money rises. d. less money is needed to buy the same amount of goods, so the value of money falls.

Respuesta :

The right response is choice (b). When the consumer price index rises from 100 to 120, more money is required to purchase the same amount of products, decreasing the purchasing power of money.

What occurs if the consumer price index increases?

A rise in the CPI indicates that there has been an increase in the average change in price over time. Eventually, this results in changes to the cost of living and income (presumably so that income is adjusted to meet a higher cost of living).

The average family must spend more money to maintain the same level of life as before the increase in the consumer price index. The consumer price index compares the price of an assortment of goods and services to the price of the same assortment in the base year.

What leads to an increase in the consumer price index?

Inflation may come from price increases resulting from growing manufacturing costs, such as those for labor and raw materials. Inflation can result from rising demand for goods and services because consumers are willing to pay more for the product.

Learn more about consumer price index: https://brainly.com/question/3870930

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