The consumer price index tends to:（） A. ov

问题：

The consumer price index tends to:（）

A. overstate the inflation rate, because its market basket is fixed and does not consider that consumers will substitute away from goods that have risen dramatically in price.

B. overstate the inflation rate because its market basket is variable and takes into consideration that consumers will substitute away from goods that have risen dramatically in price.

C. understate the inflation rate because its market basket is fixed and does not consider that consumers will substitute away from goods that have risen dramatically in price.