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The Fed's preferred measure of inflation is PCE (personal consumption expenditure) price index. The following statement on PCE price index is ___________. Inflation measured by

The Fed's preferred measure of inflation is PCE (personal consumption expenditure) price index. The following statement on PCE price index is ___________. "Inflation measured by the PCE index is generally lower than that measured by the CPI index, as the PCE index takes into account the substitution effects." a. False. b. True. c. Cannot be determined on the basis of the provided information

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