Which of the Following Is True of the Chained Consumer

Multiple Choice

Which of the following is true of the chained consumer price index?

A) It will generally result in a slightly lower figure for the measured annual rate of inflation than the regular consumer price index.
B) It makes no allowance for shifts away from goods and services as they become more expensive.
C) It considers only changes in the prices of household necessities such as food and clothing.
D) It holds the quantities of the goods and services used to calculate the index constant over lengthy time periods.