Answered

How does the consumer price index help the consumer?

A. It predicts future income tax rates for households.
B. It identifies tax loopholes in the US tax code.
C. It provides information concerning interest rates.
D. It compares the prices of items from month to month.



Answer :

GinnyAnswer

Final answer:

The Consumer Price Index (CPI) helps consumers by measuring inflation rates, indexing real wages, and influencing governmental policies.


Explanation:

The Consumer Price Index (CPI) is a measure of inflation that helps consumers by reflecting changes in the prices of goods and services they typically purchase. By using the CPI, consumers can determine whether their incomes are keeping pace with the cost of living.

Additionally, the CPI aids in indexing the real value of wages, salaries, and pensions, allowing individuals to make informed financial decisions based on the inflation rate.

Moreover, the CPI influences governmental policies and decisions made by entities such as the president, U.S. Congress, and the Federal Reserve Board based on CPI trends.


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