If the Boskin Commission's Conclusion That the CPI ______ the "True

question 29

Multiple Choice

If the Boskin Commission's conclusion that the CPI ______ the "true" inflation rate is correct, then the true improvement in living standards over time has been _____.

• A) understates; overestimated
• B) understates; underestimated
• C) overstates; underestimated
• D) measures; overestimated

---

Definitions:

Invoices

Documents issued by a seller to a buyer that list goods or services provided and the amount due for payment.

Cash Refunds

Payments returned to customers for various reasons, such as returns or overcharges.

Bank Deposits

Funds placed into a bank account for safekeeping, which may bear interest over time.

Slow Payments

Delays in the settlement of financial obligations, typically in the context of customers taking longer than agreed to pay their invoices.