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Which category is NOT included in the CPI basket?
- a)Fuel and Light
- b)Miscellaneous
- c)Entertainment
- d)Housing
Correct answer is option 'B'. Can you explain this answer?
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Which category is NOT included in the CPI basket?a) Fuel and Lightb) M...
The CPI basket includes categories such as Fuel and Light, Miscellaneous, and Housing, but it does not explicitly categorize "Entertainment." The Miscellaneous category encompasses a wide range of expenses, including education, healthcare, transport, and recreation, but specific entertainment costs are not singled out in the traditional CPI categories. Understanding these categories is essential for grasping how inflation affects different areas of consumer spending. An interesting note is that the CPI can influence economic policies, as a higher inflation rate may lead to changes in interest rates by central banks.
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Which category is NOT included in the CPI basket?a) Fuel and Lightb) Miscellaneousc) Entertainmentd) HousingCorrect answer is option 'B'. Can you explain this answer?
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