Which of the Following Describes the Accuracy of the Consumer

question 86

Multiple Choice

Which of the following describes the accuracy of the Consumer Price Index (CPI) ?

• A)Changes in the CPI accurately reflect the true rate of inflation.
• B)Changes in the CPI understate the true rate of inflation.
• C)Changes in the CPI overstate the true rate of inflation.
• D)Changes in the CPI are unrelated to the true rate of inflation.

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