If the Laspeyres Quantity Index Is Less Than 1, Then

question 9

Multiple Choice

If the Laspeyres quantity index is less than 1, then:

• A)the consumption bundle in period 1 is preferred to that of period 0.
• B)the consumption bundles cannot be compared.
• C)both consumption bundles are equally preferred.
• D)the consumption bundle in period 0 is preferred to that of period 1.

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Definitions:

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