Union Contracts with Built-In Cost-Of-Living Adjustments and Home Mortgages That

question 31

Multiple Choice

Union contracts with built-in cost-of-living adjustments and home mortgages that vary with the rate of inflation are:

• A) inappropriate ways of combating inflation.
• B) examples of bracket creep.
• C) means of implementing fiscal policy.
• D) steps that can be taken to decrease the adverse impacts of inflation.
• E) examples of failed discarded policies of the 1970s.

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Definitions:

State Supreme Court

The highest judicial court in a U.S. state, responsible for interpreting state laws and constitutions.

Illegal

Actions or activities that are prohibited by law and subject to sanctions.

Option Contract

A legal agreement in which a buyer has the right but not the obligation to buy or sell an asset at a pre-agreed price within a specified period.

Promissory Estoppel

A legal doctrine prohibiting someone from revoking a guarantee given to another individual if the latter has sensibly counted on such guarantee to their disadvantage.