The usefulness of standard goods market price indexes for judging policy is limited because:
A)they include the prices of assets.
B)they include only the price of gold and silver.
C)the United States is no longer on the gold standard.
D)they do not include the price of assets.

Question

Quizplus · Accepted Answer

Standard goods market price indexes, such as the Consumer Price Index (CPI), primarily focus on the prices of goods and services consumed by households and do not include the price of assets like stocks, bonds, or real estate. This limitation can make them less useful for policy decisions that affect or are affected by asset prices.

The Usefulness of Standard Goods Market Price Indexes for Judging