Solved

When Consumers Substitute One Good for Another, This Substitution

Question 23

Multiple Choice

When consumers substitute one good for another, this substitution:


A) is captured by the CPI only if it occurs because of price changes.
B) is captured by the CPI only if it occurs because of changes in consumers' tastes and preferences.
C) is always captured by the CPI.
D) is never captured by the CPI.

Correct Answer:

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