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How Is the CPI Constructed

Question 94

Multiple Choice

How is the CPI constructed?


A) by multiplying the current-year value of a market basket by the base-year value of the same market basket and dividing by 100
B) by dividing the current-year value of a market basket by the base-year value of the same market basket and multiplying by 100
C) by dividing the value of a market basket by the rate of inflation
D) by multiplying the value of a market basket by the rate of inflation

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