Which of the Following Statements Is Correct

question 20

Multiple Choice

Which of the following statements is correct?

• A)The Paasche price index is always equal to the Laspeyres price index during periods of inflation.
• B)The Laspeyres price index tends to underestimates price increases during periods of inflation.
• C)The Paasche price index tends to overestimates price increases during periods of inflation.
• D)The Laspeyres price index tends to overestimate price increases during periods of inflation.

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