Ignoring the issue of whether the CPI overstates the cost of living generally, the fact that the poverty line is adjusted using the overall CPI to adjust for overall inflation means that if the costs of necessities rises

A. faster than the overall CPI, the poverty line is understated.
B. faster than the overall CPI, the poverty line is overstated.
C. slower than the overall CPI, the poverty rate is overstated.
D. slower than the overall CPI, the poverty rate is understated.


Answer: A

Economics

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