Multiple Choice
The consumer price index (CPI) equals 100 in year one and 105 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) $15.05.
D) $15.75.
E) $16.05.
Correct Answer:
Verified
Correct Answer:
Verified
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