In calculating the CPI, a fixed basket of goods and services is used. The quantities of the goods and services in the fixed basket are determined by
a. surveying consumers.
b. surveying sellers of the goods and services.
c. working backward from the rate of inflation to arrive at imputed values for those quantities.
d. arbitrary choices made by federal government employees.
Ans: a. surveying consumers.
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A) private saving could have been either positive or negative. B) private saving was negative. C) private saving was positive. D) private saving equaled zero.
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