The Outlet Substitution Bias Is Most Likely to Put ________

question 93

Multiple Choice

The outlet substitution bias is most likely to put ________ and so ________ the inflation rate.

• A)a downward bias into the CPI;understate
• B)an upward bias into the CPI;understate
• C)an upward bias into the CPI;overstate
• D)a downward bias into the CPI;overstate
• E)no bias into the CPI because it is such a small effect;have no effect on

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Definitions:

Salt Deposits

Concentrations of salt left behind when water evaporates, forming layers underground or on the surface.

Less Dense

Describes a lower mass per unit volume of a substance, often causing it to float atop more dense materials.

Continental Crust

The thick part of the Earth's crust that forms the large landmasses, typically composed of less dense rocks like granite.

Continental Slope

The steep slope extending from the outer edge of the continental shelf down to the continental rise or the ocean floor.