One reason economists have begun focusing on the Personal Consumption Expenditure measure for inflation is that the PCE deflator: takes the exchange rate value of the dollar into account. allows for a changing basket of goods. includes the price of assets such as stock portfolios. weights food more because food is a rising percent of expenditures.

One reason economists have begun focusing on the Personal Consumption Expenditure measure for inflation is that the PCE deflator:

ALLOWS FOR A CHANGING BASKET OF GOODS.

Explanation:

Personal Consumption Expenditure can used as means or measure of determining the Consumption of goods and services but durable and non durable by households in an economy.

Personal Consumption Expenditure (PCE) deflator is used to determine the rate of inflation in an economy due to the differences or changes in personal consumption of goods and services by households.

PCE deflator allows for a changing basket of goods thereby making it suitable as a measure of inflation.

answer; tech (a) is correct;