Suppose Robert Has a Wage Contract Subject to an Escalator

question 150

Multiple Choice

Suppose Robert has a wage contract subject to an escalator clause. He earned $22 per hour last year. In the same year, the consumer price index rose from 120.0 to 126.0. Based on the given information, what should his new wage be?

• A) $24 per hour
• B) $23.10 per hour
• C) $24.40 per hour
• D) $22.50 per hour

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Definitions:

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A belief that external forces, rather than personal actions or decisions, dictate the events in one’s life.

Feel-good,do-good Phenomenon

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