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Author Question: The commodity substitution bias is most likely to put ________ into the CPI and so ________ the ... (Read 58 times)

jasdeep_brar

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on: Jun 30, 2018
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

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

C


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