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The Main Drawback of the Chained Consumer Price Index (CPI)compared

Question 27

Multiple Choice

The main drawback of the chained consumer price index (CPI) compared to the traditional CPI is that the chained CPI


A) only includes final goods and services.
B) is not updated as frequently.
C) is more difficult to calculate.
D) underestimates true inflation.
E) overestimates true inflation.

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