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During a period of deflation, the graph of the consumer price index (CPI) will rise.

A. True
B. False ...?

1 Answer

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The correct answer for this statement would be option B. FALSE. It is not true not during a period of deflation, the graph of the consumer price index or CPI will rise, but rather, it would show a downward pattern. The consumer price index measures changes in the price level of a market basket of consumer goods and services. Hope this answer helps.
User Toma Nistor
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