Because a Third of Government Outlays Are Linked Directly to the CPI

question 32

Multiple Choice

Because a third of government outlays are linked directly to the CPI, as time passes the CPI bias
Means that the government's outlays are

• A)larger than needed to keep pace with the cost of living if the CPI is falling from one year to the next, otherwise the outlays are smaller than needed to keep pace with the cost of living.
• B)smaller than needed to keep pace with the cost of living if the CPI is falling from one year to the next, otherwise the outlays are larger than needed to keep pace with the cost of living.
• C)larger than needed to keep pace with the cost of living.
• D)smaller than needed to keep pace with the cost of living.
• E)exactly equal to the changes in the cost of living.

---

Definitions:

Invoices

A document sent by a seller to a buyer, detailing the products or services provided, their prices, and the total amount owed.

Trade Discount

A reduction in the listed price of goods or services, usually offered to members of the same trade or business sector.

Volume Purchase Discount

A volume purchase discount is a price reduction offered to buyers who purchase large quantities of goods or services.

Appliance Warehouse

An appliance warehouse is a large storage facility dedicated to housing household appliances like refrigerators, stoves, and washers for sale.