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The Basket Used to Calculate the Consumer Price Index (CPI)

Question 242

Multiple Choice

The basket used to calculate the Consumer Price Index (CPI) assumes that over time consumers


A) buy more products whose prices fall.
B) buy fewer products whose prices rise.
C) buy newly introduced products.
D) buy the same quantities of products no matter how prices change.
E) pay the same prices for products no matter how quantities change.

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