The practice of increasing a nominal quantity each period by an amount equal to the percentage increase in a specified price index is called:
A)a substitution bias.
B)the Fisher effect.
C)deflating.
D)indexing.

Question

Quizplus · Accepted Answer

Indexing is the practice of increasing a nominal quantity each period by an amount equal to the percentage increase in a specified price index.

The Practice of Increasing a Nominal Quantity Each Period by an Amount