Because the CPI Overstates the Rate of Inflation, Cost of Living

question 13

Multiple Choice

Because the CPI overstates the rate of inflation, Cost of Living Adjustments for wages that are based on it will

• A)cause these wages to rise more slowly that they otherwise would.
• B)cause these wages to rise more quickly that they otherwise would.
• C)be correct.
• D)never have to account for this to get it right.

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