Substitution Bias in the CPI Refers to the Fact That

Multiple Choice

Substitution bias in the CPI refers to the fact that the CPI

A) takes into account the substitution of goods by consumers when relative prices change.
B) takes no account of the substitution of goods by consumers when relative prices change.
C) substitutes quality changes whenever they occur without taking account of the cost of the quality changes.
D) substitutes relative prices for absolute prices of goods.