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The CPI Overstates Inflation Because the Average Consumer Buys

Question 103

Multiple Choice

The CPI overstates inflation because the average consumer buys


A) the same basket of goods every week.
B) more of those goods whose relative price has risen.
C) less of those goods whose relative price has risen.
D) lower quality goods if they have a choice.
E) a generally random assortment of goods and services each week because what is purchased depends on what the consumer needs.

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