If CPI Overstates the "True" Inflation Rate, Then Indexing Social

question 207

Multiple Choice

If CPI overstates the "true" inflation rate, then indexing Social Security benefits to the CPI:

• A) costs the federal government billions of dollars.
• B) saves the federal government billions of dollars.
• C) earns the federal government billions of dollars.
• D) has no impact on the dollars spend by the federal government.

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Definitions:

Sound Waves

Vibrations that travel through air or another medium and can be heard when they reach a person's or animal's ear.

Amplitude

Amplitude refers to the maximum extent of a vibration or oscillation, measured from the position of equilibrium.

Weber's Law

A principle stating that the change in a stimulus that will be just noticeable is a constant ratio of the original stimulus.

Just Noticeable Difference

The minimal change in a stimulus that can just barely be detected by an organism.