Which of the following is true of the chained consumer price index?
A) It will generally result in a slightly lower figure for the measured annual rate of inflation than the regular consumer price index.
B) It makes no allowance for shifts away from goods and services as they become more expensive.
C) It considers only changes in the prices of household necessities such as food and clothing.
D) It holds the quantities of the goods and services used to calculate the index constant over lengthy time periods.

Question

Quizplus · Accepted Answer

The chained consumer price index considers changes in consumption patterns as prices fluctuate, resulting in a slightly lower inflation rate than the regular consumer price index.

Which of the Following Is True of the Chained Consumer