Which of the Following Is True About the Consumer Price

question 92

Multiple Choice

Which of the following is true about the consumer price index?

• A)It accounts for people switching to goods whose prices have fallen.
• B)It assumes that consumers purchase the same amount of each product in the market basket each month.
• C)It frequently updates the price changes of new products added to the market basket,as these have a tendency to fall.
• D)It filters out the part of price increases that occurs because of quality improvements in products.

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Definitions:

Real Asset

Physical or tangible assets that have value, such as real estate, commodities, and natural resources.

Finance

The study and management of money, investments, and other financial instruments. It involves the processes of creating, managing, and investing capital.

Asset

An economic resource that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

Financial Assets

Assets such as stocks, bonds, bank deposits, or any other instrument that derives value because of a contractual right or ownership claim.