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By Not Taking into Account the Possibility of Consumer Substitution,the

Question 195

Multiple Choice

By not taking into account the possibility of consumer substitution,the CPI


A) understates the cost of living.
B) overstates the cost of living.
C) may overstate or understate the cost of living,depending on how quickly prices rise.
D) may overstate or understate the cost of living,regardless of how quickly prices rise.

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