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:

Compounded Monthly

A method of calculating interest in which the accrued interest is added to the principal sum every month, so that each subsequent interest calculation is based on a slightly higher amount.

Lifetime Interest

The total amount of interest that will be paid or earned over the entire life of a loan or investment.

Loan

A quantity of money that is lent and is supposed to be repaid along with an additional amount as interest.

Compounded Monthly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a monthly basis.