Multiple Choice
Which statement best defines "indexation"?
A) It is a process of adjusting the nominal interest rate so that it is equal to the real interest rate.
B) It is the use of a law or contract to automatically correct a dollar amount for the effects of inflation.
C) It is the use of a price index to deflate dollar values.
D) It is an adjustment made by Statistics Canada to the CPI so that the index is in line with the GDP deflator.
Correct Answer:
Verified
Correct Answer:
Verified
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