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If the CPI Overstates the True Rate of Inflation,then

Question 83

Multiple Choice

If the CPI overstates the true rate of inflation,then


A) the economy will grow more slowly than if inflation was measured accurately
B) the economy will grow more rapidly than if inflation was measured accurately
C) social security payments will increase in real terms
D) social security payments will decrease in real terms
E) so will other means of measuring the inflation rate

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