Substitution Bias in the CPI Refers to the Fact That

question 75

Multiple Choice

Substitution bias in the CPI refers to the fact that the CPI

• A) takes no account of the substitution of goods by consumers when relative prices change.
• B) substitutes relative prices for absolute prices of goods.
• C) substitutes quality changes whenever they occur without taking account of the cost of the quality changes.
• D) takes into account the substitution of goods by consumers when relative prices change.

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Definitions:

Colonic

Related to the colon, the final part of the digestive system where water is absorbed and stool is formed.

Emesis

The act of vomiting, or expelling stomach contents through the mouth.

Duodenal

Pertaining to the duodenum, the first part of the small intestine immediately beyond the stomach.

Crohn Disease

A chronic inflammatory bowel disease affecting the lining of the digestive tract.