Which of the Following Would Be a Consequence of Substitution

Multiple Choice

Which of the following would be a consequence of substitution bias in the CPI?

A) Social Security payments would not adequately compensate retired workers for inflation.
B) Businesses would overcompensate employees for inflation when giving the cost of living rises.
C) The inflation rate based on the CPI would underestimate the true level of inflation.
D) Judges would award child support payments that would not adequately keep up with the true cost of inflation.
E) Economists make errors in estimating inflation when using substitutes for the CPI such as GDP deflator.