Which of the Following Is True

Multiple Choice

Which of the following is true?

A) The CPI and the GDP deflator tend to move in opposite directions.
B) The GDP deflator tends to be much more volatile than the CPI.
C) Both the CPI and the GDP deflator probably overstate the inflation rate.
D) The GDP deflator includes fewer goods than the CPI.
E) The GDP deflator generally rises substantially faster than the CPI during inflationary conditions.