Because of the Biases in Calculating the CPI, Actual Inflation

question 354

Multiple Choice

Because of the biases in calculating the CPI, actual inflation is

• A) more than the measured inflation rate by about 1 percent per month.
• B) less than the measured inflation rate by about 1 percent per year.
• C) accurately measured.
• D) more than the measured inflation rate by about 1 percent per year.

---

Definitions:

Phalanges

The skeletal components located in the digits of humans and other vertebrates.

Carpals

The eight small bones that make up the wrist that connect the hand to the forearm.

Metacarpals

The five long bones found in the hand between the wrist (carpals) and the fingers (phalanges), making up the palm.

Phalanges

The skeletal structures found within human fingers and toes.