Which of the Following Is the Correct Interpretation of a Paasche

Short Answer

Which of the following is the correct interpretation of a Paasche price index of 75, where the base year is 2009 and the current year is 2011? $\begin{array}{|l|l|}\hline A&\text {According to the Paasche price index, prices have decreased by \( 75 \% \) from 2009 to 2011 . }\\\hline B&\text {According to the Paasche price index, prices have decreased by \( 25 \% \) from 2011 to 2009 . }\\\hline C&\text { According to the Paasche price index, prices have decreased by \( 25 \% \) from 2009 to 2011 }\\\hline D&\text {. None of these choices are correct. }\\\hline \end{array}$