The consumer price index overestimates inflation because it
A. allows consumers to move along a given indifference curve from one year to the next.
B. uses the second year's market basket as the base rather than the first year's basket.
C. measures the cost of a market basket in the second year that has too many units of the most inflated items.
D. compares prices of what consumers actually buy rather than a fixed basket of goods.
Answer: C
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