A CPI that equals 1.34 in 2016 (when 2010 is the base year) means that:

A. prices in 2016 are 34 percent higher than in 2015.
B. the average level of prices is 34 percent higher in 2016 than in the base year.
C. the CPI equals $1.34 in 2016.
D. the inflation rate in 2016 is 134 percent.


Answer: B

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