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The headline on an article in the Wall Street Journal was: "Why Ice Cream is More Important Than Bacon When Tracking Inflation."Source: Sarah Chaney, "Why Ice Cream is More Important Than Bacon When Tracking Inflation," Wall Street Journal, April 17, 2017.Considering how the CPI is constructed, why would ice cream be more important than bacon in calculating inflation?A.Ice cream would be more important if consumers spent a higher fraction of their budgets on ice cream than on bacon.B.Ice cream would be more important because consumer biases for bacon will tend to understate the true inflation rate.C.Ice cream would be more important because the consumption of ice cream is more constant over time.D.Ice cream would be more important since it is more representative of a typical market basket for a family of four.
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