Suppose That a Price Index for a Certain Basket of Goods

Multiple Choice

Suppose that a price index for a certain basket of goods and services has a value of 150 in 2015 and a value of 156 in 2016.This index suggests that the cost of the market basket of goods and services

A) was 4% higher in 2016 than in 2015.
B) was 6% lower in 2016 than in 2015.
C) was 6% higher in 2016 than in 2015.
D) was 156% higher in 2016 than in 2015.
E) was approximately the same in 2016 and 2015.