A common example of indexing in the United States is:
A)annual bonuses to workers.
B)wage increases with seniority.
C)30-year fixed-rate mortgage loans.
D)escalator clauses tied to the CPI in wage agreements.

Question

A common example of indexing in the United States is:
A)​annual bonuses to workers.
B)​wage increases with seniority.
C)​30-year fixed-rate mortgage loans.
D)​escalator clauses tied to the CPI in wage agreements.

Quizplus · Accepted Answer

Escalator clauses tied to the Consumer Price Index (CPI) in wage agreements are a common example of indexing in the United States. This means that the wage increases are automatically adjusted based on changes in the CPI, allowing the workers to maintain their purchasing power even as inflation increases.

A Common Example of Indexing in the United States Is