I the Largest Component of the Canadian CPI Is Food

Multiple Choice

i. The largest component of the Canadian CPI is Food.
ii. Besides measuring change in the prices of goods and services, the consumer price indexes have
A number of other applications. The CPI is used to determine real disposable personal income,
Deflate sales or other series, find the purchasing power of the dollar and establish cost of living
Increases.
iii. The concept of real income is sometimes called deflated income or income expressed in
Constant dollars and the CPI is called the deflator.

A) (i) , (ii) , and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii) .
C) (i) and (iii) are correct statements but not (ii) .
D) (ii) and (iii) are correct statements but not (i) .
E) (i) , (ii) , and (iii) are all false statements.