The Technique Currently Used to Calculate the CPI Implicitly Assumes

question 26

Multiple Choice

The technique currently used to calculate the CPI implicitly assumes that over time consumers buy

• A) relatively more of goods whose relative prices are rising.
• B) relatively less of goods whose relative prices are rising.
• C) the same relative quantities of goods as in a base year.
• D) goods and services whose quality improves at the rate of growth of real income.

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Decrease Risk

A strategy or action taken to reduce the likelihood of facing potential threats or negative outcomes.

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