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One Problem with the Consumer Price Index Stems from the Fact

Question 4

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One problem with the consumer price index stems from the fact that, over time, consumers tend to buy larger quantities of goods that have become relatively less expensive and smaller quantities of goods that have become relatively more expensive. This problem is called


A) price-change neglect.
B) unmeasured quality change.
C) substitution bias.
D) relative bias.

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