The bias in the CPI typically
A. overstates inflation.
B. understates inflation.
C. about half the time overstates and about half the time understates the inflation rate.
D. cannot be measured or estimated.
Answer:A
The bias in the CPI typically
A. overstates inflation. B. understates inflation. C. about half the time overstates and about half the time understates the inflation rate. D. cannot be measured or estimated.