Before the Adoption of a Chain-Weighted Price Index in the United

Multiple Choice

Before the adoption of a chain-weighted price index in the United States, the payments based on changes in the Consumer Price Index (CPI) tended to be:

A) too large, because the system used a Paasche index.
B) too large, because the system used a Laspeyres index.
C) too small, because the system used a Paasche index.
D) too small, because the system used a Laspeyres index.