Multiple Choice
The CPI equals 1.00 in year one and 1.05 in year two. If the nominal wage is $15 in year one and a contract calls for the wage to be indexed to the CPI, what will be the nominal wage in year two?
A) $14.29
B) $15.00
C) $15.75
D) $16.05
Correct Answer:
Verified
Correct Answer:
Verified
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