When the Quality of a Good Improves,the Purchasing Power of the Dollar

question 87

Multiple Choice

When the quality of a good improves,the purchasing power of the dollar

• A)increases,so the CPI overstates the change in the cost of living if the quality change is not accounted for.
• B)increases,so the CPI understates the change in the cost of living if the quality change is not accounted for.
• C)decreases,so the CPI overstates the change in the cost of living if the quality change is not accounted for.
• D)decreases,so the CPI understates the change in the cost of living if the quality change is not accounted for.