For the Purpose of Calculating the Consumer Price Index,the Basket

question 10

Multiple Choice

For the purpose of calculating the consumer price index,the basket of goods

• A)is kept the same from year to year so that the effects of price changes are isolated from the effect of any quantity changes that might be occurring at the same time.
• B)is kept the same from year to year;otherwise,the value of the index would remain constant from year to year.
• C)varies from year to year;otherwise,the value of the index would remain constant from year to year.
• D)varies from year to year so that consumers' buying patterns are updated in a timely fashion.

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