The currently used method for calculating the CPI
A. accounts for people increasing consumption of a good that falls in relative price.
B. probably overstates inflation by about 1 percentage point.
C. has no effect on government expenditures.
D. None of the above answers are correct.
Answer:B
The currently used method for calculating the CPI
A. accounts for people increasing consumption of a good that falls in relative price. B. probably overstates inflation by about 1 percentage point. C. has no effect on government expenditures. D. None of the above answers are correct.