To Measure Core Inflation, the BLS Excludes ______________ from the Basket

question 127

Multiple Choice

To measure core inflation, the BLS excludes ______________ from the basket of goods used to calculate the CPI.

• A) food and gasoline
• B) food, clothing, and housing
• C) food and housing
• D) housing and gasoline

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Definitions:

Federal Funds Target Rate

The interest rate at which banks and credit unions lend reserve balances to other depository institutions overnight, set by the Federal Reserve to influence economic conditions.

Government Bonds

Debt securities issued by a government to finance its expenditures, typically featuring a fixed interest rate and maturity date.

Interest Rates

Represents the charge or payment for the use of money, often expressed as an annual percentage of the loan or investment amount.

Stock Market Boom

A period of significant and rapid increases in the value of shares traded on stock exchanges, often reflecting optimism about the economy.