Suppose that a monthly Netflix subscription is an item in the CPI market basket. Netflix raises its subscription price and also places a strict new limit on the number of movies that can be viewed per month. The BLS makes no adjustment for the quality change. Which statement is correct about the BLS's response to Netflix's action? Question 3 options: The value of the CPI rises, but this understates the increase in the true cost of living since the quality of a subscription fell. The value of the CPI is unchanged, which is appropriate. The CPI accurately captures the effect of Netflix's actions on the cost of living. The value of the CPI rises, and this overstates the increase in the true cost of living.

A. economic resources to be used or turned into cash within one year. b. reports assets, liabilities, and stockholders' equity. c. decrease assets; increase liabilities and stockholders' equity. d. increase assets; decrease liabilities and stockholders' equity. e. an exchange or event that has a direct and measurable financial effect. f. accounts for a business separate from its owners. g. the principle that assets should be recorded at their original cost to the company. h. a standardized format used to accumulate data about each item reported on financial statements. i. the basic accounting equation. j. the two equalities in accounting that aid in providing accuracy. k. the account credited when money is borrowed from a bank using a promissory note. l. cumulative earnings of a company that have not yet been distributed to the owners. m. every transaction has at least two effects. n. amounts presently owed by the business. transaction, separate entity assumption, balance sheet, liabilities, assets, current assets, notes payable, duality of effects, retained earnings, debit.