Final Answer:
Thw answer of the given statement that "the consumer price index" is E. has risen 200%.
Step-by-step explanation:
The Consumer Price Index (CPI) is calculated using the formula:
![\[ \text{CPI} = \left( \frac{\text{Cost of Basket in Current Period}}{\text{Cost of Basket in Base Period}} \right) * 100 \]](https://img.qammunity.org/2024/formulas/business/high-school/zr8ubf8y7e3h9z7c84txel5zo0xjgd7s4q.png)
Given that the cost of the basket of goods and services has risen from $200 in the base period to $400 in the current period, we can substitute these values into the formula:
![\[ \text{CPI} = \left( (400)/(200) \right) * 100 = 200\% \]](https://img.qammunity.org/2024/formulas/business/high-school/81owpydd7jjhecd4isrcajn3to6fyu3ca1.png)
Therefore, the correct answer is E. The Consumer Price Index has risen by 200%, indicating the percentage increase in the cost of the basket of goods and services from the base period to the current period.