If the Total Expenditures of a Typical Family Equaled $35,000

Multiple Choice

If the total expenditures of a typical family equaled $35,000 per year in 2015 and the exact same basket of goods and services cost $40,000 in the year 2017, the family's cost of living:

A) increased by 14 percent.
B) decreased by 12.5 percent.
C) decreased by 14 percent.
D) increased by 12.5 percent.