Which of the Following Statements About the CPI Is (Are)correct

question 90

Multiple Choice

Which of the following statements about the CPI is (are) correct?
I The only significant bias in the CPI is the commodity substitution bias.
Ii. The CPI probably overstates inflation by 1.1 percentage points a year.
Iii. As far as the bias in the CPI is concerned, the new goods bias and the outlet substitution biases are irrelevant.

• A)i and iii
• B)i and ii
• C)ii only
• D)iii only
• E)i only

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Revolutions per minute of an engine; a measure of the engine's speed.