Union contracts with built-in cost-of-living adjustments and home mortgages that vary with the rate of inflation are:
A) examples of failed policies of the 1970s.
B) examples of bracket creep.
C) means of implementing fiscal policy.
D) steps that can be taken to decrease the adverse impacts of inflation.

Question

Quizplus · Accepted Answer

Union contracts with built-in cost-of-living adjustments and home mortgages that vary with the rate of inflation are steps that can be taken to decrease the adverse impacts of inflation. These mechanisms help people to maintain their purchasing power and avoid the erosion of their real incomes caused by inflation.

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