Answered

Discover answers to your questions with Westonci.ca, the leading Q&A platform that connects you with knowledgeable experts. Get the answers you need quickly and accurately from a dedicated community of experts on our Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

What two outcomes may result if the price of the goods and services in the Consumer Price Index are increasing too rapidly?

A. Consumers can buy less for their dollars.
B. There is a strong chance that inflation is occurring.
C. Consumers can buy more for their dollars.
D. There is a strong chance that deflation is occurring.

Sagot :

GinnyAnswer

Final answer:

Inflation leads to decreased purchasing power, while rapidly increasing prices indicate inflation is occurring.


Explanation:

Consumers can buy less for their dollars when the price of goods and services in the CPI increases rapidly. This occurs due to the decreased purchasing power of the currency. Additionally, a rapid increase in prices indicates a strong chance that inflation is occurring, where the overall price level in the economy is rising.


Learn more about Inflation and Consumer Price Index here:

https://brainly.com/question/34935670


Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.