he CPI is more commonly used as a gauge of inflation than the GDP deflator is because the a. CPI includes more goods and services that the GDP deflator does. b. GDP deflator cannot be used to gauge inflation. c. CPI is easier to measure. d. CPI better reflects the goods and services bought by consumers.

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i. e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?