Author Question: As the price of gasoline rose during the 1970s, consumers cut back on their use of gasoline relative ... (Read 172 times)

humphriesbr@me.com · **on:** Jun 30, 2018

As the price of gasoline rose during the 1970s, consumers cut back on their use of gasoline relative to other consumer goods. This situation contributed to which bias in the consumer price index?
a. Substitution bias.
b. Transportation bias.
c. Quality bias.
d. Indexing bias.

Question 2

The greater the marginal propensity to consume (MPC) in the economy, the greater the spending multiplier.
a. True
b. False
Indicate whether the statement is true or false