Business, 27.11.2019 01:31 marahsenno

Suppose hypothetically that you buy a lot of food such as tofu, veggie burgers, and organic fruit that are not included in the market basket used to compute the cpi. in addition, suppose that all of these goods have become cheaper over the last year, while the overall cpi has increased by 6 percent. then which of the following is true?

a. the cpi will understate the negative impact of inflation on your purchasing power and standard of living.
b. the cpi will still accurately state the negative impact of inflation on your purchasing power and standard of living.
c. the cpi will overstate the negative impact of inflation on your purchasing power and standard of living.
d. none of the above.

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Suppose hypothetically that you buy a lot of food such as tofu, veggie burgers, and organic fruit th...

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