The biases in the CPI are
A) not important since they are so small.
B) important only to economists, not the real world.
C) important since they effect nearly 1/3 of federal government spending.
D) not important although they are large.

Question

Quizplus · Accepted Answer

The biases in the CPI are important since they affect nearly 1/3 of federal government spending. The CPI is used to adjust federal programs, including Social Security and income taxes, which affects a large portion of the population. Therefore, even small biases can add up to significant consequences.

The Biases in the CPI Are