Question

When a price, wage, or interest rate is adjusted automatically with inflation, it is said to be __________.

Answer 1

Answer:

Indexed.

Explanation:

Indexing is the adjustment of amounts of money to an index figure. This often involves adjustment to inflation so that the real amount remains the same, that is, it continues to represent the same average purchasing power. For example, inflation is measured by the consumer price index. This is a weighted average price index of the average household.  Indexation can, for example, apply to wages, pensions, social security, housing rent, alimony, tax credits and fines.