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When We Compare the Records of the CPI and the PCE

Question 149

Multiple Choice

When we compare the records of the CPI and the PCE price index over time,the


A) two are very different in magnitude.
B) PCE price index tends to exceed the CPI.
C) CPI tends to exceed the PCE price index.
D) two measures are identical.
E) CPI tends to exceed the PCE price index when inflation is high,and the PCE price index tends to exceed the CPI when inflation is low.

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