Suppose that a new iPod with 30 new features costs $100 more to produce and buy than does the previous version. The $100 price increase
A. is not added to the inflation rate because consumer electronics are not part of the consumer market basket.
B. is not added to the inflation rate because it represents an improvement in quality.
C. is added to the inflation rate.
D. is divided by the additional benefits and then added to the inflation rate.
Answer: B
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Fill in the blank(s) with the appropriate word(s).