Which One of the Following Statements Is True of the Consumer

question 59

Multiple Choice

Which one of the following statements is true of the Consumer Price Index?

• A) It does not take account of the price of imported goods and services.
• B) It measures changes in prices of a fixed basket of goods.
• C) It does not take into account the price of used goods.
• D) It understates the true rate of inflation.

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Definitions:

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An 18th-century philosopher known for his contributions to political philosophy, education, and literature, emphasizing natural human goodness.

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