Given a scenario where the CPI has increased by 15% over the last year, synthesize the potential impacts on consumer behavior and business strategies.

• A. Consumers will save more, and businesses will expand operations.
• B. Consumers may reduce spending, and businesses might increase prices or cut costs.
• C. Consumers will increase spending, and businesses will lower prices.
• D. Consumers will maintain spending levels, and businesses will not change strategies.

Answer: (B)