If the Boskin Commission's conclusion that the CPI ______ the "true" inflation rate is correct, then indexing Social Security benefits to the CPI is ______ the federal government billions of dollars.
A) understates; costing
B) overstates; costing
C) understates; saving
D) measures; saving

Question

Quizplus · Accepted Answer

The Boskin Commission concluded that the Consumer Price Index (CPI) overstates the "true" inflation rate. If Social Security benefits are indexed to an overstated CPI, it means the government is paying more than necessary, thus costing billions of dollars.

If the Boskin Commission's Conclusion That the CPI ______ the "True