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 falls.
B)more money is needed to buy the same amount of goods,so the value of money rises.
C)less money is needed to buy the same amount of goods,so the value of money falls.
D)less money is needed to buy the same amount of goods,so the value of money rises.

Question

Quizplus · Accepted Answer

When the Consumer Price Index increases from 100 to 120, it means that the overall price of goods and services has increased. Therefore, more money is needed to buy the same amount of goods, indicating that the value of money has fallen.

When the Consumer Price Index Increases from 100 to 120