When We Are Calculating the Consumer Price Index and the Inflation

question 87

Multiple Choice

When we are calculating the consumer price index and the inflation rate for a certain year,

• A)the value of the consumer price index may depend on the choice of a base year,but the inflation rate does not depend on the choice of a base year.
• B)the inflation rate may depend on the choice of a base year,but the value of the consumer price index does not depend on the choice of a base year.
• C)both the value of the consumer price index and the inflation rate may depend on the choice of a base year.
• D)neither the value of the consumer price index nor the inflation rate depends on the choice of a base year.

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