Which of the Following Is FALSE

Multiple Choice

Which of the following is FALSE?

A) automatic cost-of-living adjustments in formal labor contracts are common in many countries
B) wage indexation is more prevalent in countries where uncertainty about inflation is high
C) wage indexation is very widespread in the U.S.
D) an unanticipated increase in the inflation rate will increase the government's real tax revenue
E) agovernment bond that is indexed to the price level will have either the interest, the principal, or both adjusted for inflation