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sofia97 sofia97
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5 years ago
The fact that the CPI is a biased measure of the inflation rate means government outlays will
A) increase at a faster rate than the actual inflation rate.
B) increase at the same rate as the actual inflation rate.
C) increase at a slower rate than the actual inflation rate.
D) sometimes increase faster and sometimes increase slower than the actual inflation rate depending on whether the actual inflation rate exceeds 1.1 percent per year or is less than 1.1 percent per year.
E) None of the above because the bias in inflation measured using the CPI has nothing to do with government outlays.
Textbook 
Foundations of Macroeconomics

Foundations of Macroeconomics


Edition: 8th
Authors:
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5 years ago
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sofia97 Author
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5 years ago
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5 years ago
Don't forget to rate the answer too
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