The commodity substitution bias is most likely to put ________ ...

[jasdeep_brar]

The commodity substitution bias is most likely to put ________ into the CPI and so ________ the inflation rate.
 
  A) a random bias; randomly overstate or understate
  B) a downward bias; understate
  C) an upward bias; overstate
  D) a downward bias; overstate
  E) an upward bias; understate

Question 2

Referring to Table 12.2, if the nominal interest rate is 3.5 percent and there is no inflation, which investments will be undertaken?
 
  A) B, D, E B) D, E C) B, C, D, E D) C, E

[Rilsmarie951]

Answer to Question 1

C

Answer to Question 2

C