Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The CPI is based on a fixed quantity of goods and services in the base year.
B) The CPI measures the price of all goods and services included in GDP.
C) Services are excluded from the CPI.
D) The CPI is a by-product of computing GDP.
E) The CPI does not hold the quantity of goods and services constant when computing the price level.