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Which of the Following Is True of a Price Index

Question 98

Multiple Choice

Which of the following is true of a price index that uses a fixed market basket?


A) It accurately predicts the impact of rising prices when purchases are made at superstores.
B) It overstates the importance of items that fall in price.
C) It takes into account changes in quality while computing price changes.
D) It excludes new goods and services.

Correct Answer:

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