The Basket Used to Calculate the Consumer Price Index (CPI)

question 242

Multiple Choice

The basket used to calculate the Consumer Price Index (CPI) assumes that over time consumers

• A) buy more products whose prices fall.
• B) buy fewer products whose prices rise.
• C) buy newly introduced products.
• D) buy the same quantities of products no matter how prices change.
• E) pay the same prices for products no matter how quantities change.

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