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The Substitution Bias in the CPI Results from the Index

Question 27

Multiple Choice

The substitution bias in the CPI results from the index not taking into account:


A) the substitution of new goods for old goods in the purchases of consumers
B) that consumers substitute towards goods that have become relatively less expensive
C) the substitution of new prices for old prices in the basket of goods from one year to the next
D) the substitution of quality for quantity in consumer purchases over time

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