Arguably There Are Three Reasons Why the Consumer Price Index

question 55

Essay

Arguably there are three reasons why the consumer price index (CPI)overstates inflation.List the reasons and explain each one.

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Definitions:

No-fault Insurance

An auto insurance policy wherein insured individuals are compensated by their own insurer, regardless of fault, in the event of an accident.

Collision Deductible

The out-of-pocket expense that a policyholder must pay before an insurance company covers the cost of damage in a collision.

Annual Premium

The amount of money paid per year to keep an insurance policy active.

Low-risk Driver

A driver who is considered less likely to file a claim based on their driving history, age, and other factors, often resulting in lower insurance premiums.