Which of the Following Statements Is Correct

Multiple Choice

Which of the following statements is correct?

A) The Paasche price index is always equal to the Laspeyres price index during periods of inflation
B) The Laspeyres price index tends to underestimates price increases during periods of
Inflation
C) The Paasche price index tends to overestimates price increases during periods of
Inflation
D) The Laspeyres price index tends to overestimate price increases during periods of
Inflation.