The Consumer Price Index (CPI)equals 100 in Year One and 105

question 149

Multiple Choice

The consumer price index (CPI) equals 100 in year one and 105 in year two.If the nominal wage is $15 in year one and a contract calls for the wage to be indexed to the CPI,what will be the nominal wage in year two?

• A) $14.29.
• B) $15.00.
• C) $15.05.
• D) $15.75.
• E) $16.05.

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