How Does a Rise in the Consumer Price Index Affect

Multiple Choice

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.