Answer:
Explanation:
The Consumer Price Index (CPI) primarily measures inflation. It tracks the monthly change in prices paid by consumers for a representative basket of goods and services. The CPI is widely used to monitor changes in the overall level of prices over time and is an important indicator for policymakers, financial markets, businesses, and consumers .
While the CPI reflects changes in the prices of goods and services, it does not directly capture the increase in the value of the dollar that arises from the introduction of new goods. The CPI focuses on measuring the overall change in consumer prices based on a representative basket of goods and services, rather than changes in the value of the dollar or currency exchange rates .
Therefore, the correct answer is a) Inflation. The CPI primarily measures inflation and is not directly related to deflation, consumer spending, or currency exchange rates .
