If the CPI is 120, this means that
A. prices are 120 percent higher than in the reference base period.
B. prices are 0.12 times higher than in the reference base period.
C. prices are 20 percent higher than in the reference base period.
D. the inflation rate must be positive.
Answer:C
If the CPI is 120, this means that
A. prices are 120 percent higher than in the reference base period. B. prices are 0.12 times higher than in the reference base period. C. prices are 20 percent higher than in the reference base period. D. the inflation rate must be positive.