Which of the Following Statements Is False

Multiple Choice

Which of the following statements is false?

A) Inflation is a general rise in the level of prices.
B) Inflation can affect an individual's purchasing power when money is used as a store of value.
C) The consumer price index is based on two factors: the cost of housing and the cost of transportation.
D) The consumer price index measures the changes in prices of goods purchased by a typical consumer.
E) The base amount for the consumer price index is 100.