COLA raises are linked to:
A. your gross income.

B. your net income.

C. federal treasury interest rates.

D. the national inflation rate

Question

COLA raises are linked to: 
 A. your gross income.  
 
 B. your net income.  
 
 C. federal treasury interest rates.  
 
 D. the national inflation rate

anonymous · Answer

The answer is implied by what COLA stands for: cost of living allowance.

So which of those factors are most likely to influence your cost of living?

anonymous · Answer

gross income?

anonymous · Answer

No. Gross income is what you earn before taxes.
Net income is what you take home after taxes.

But income isn't a "cost".

anonymous · Answer

d?

anonymous · Answer

Yes, it's D.

Interest rates are a cost, but only for those who borrow money, so it's not a cost of "living".

Inflation raises the prices of goods and services that citizens use to live on, so it directly affects your "cost of living".