Maxine's lease goes up and down based on the consumer price index. Which of these provisions is included in her lease?

The inclusion of an escalator clause in Maxine's lease is essential because it allows for rent adjustments based on changes in the consumer price index (CPI). This type of clause ensures that the rent can increase or decrease in accordance with inflation or deflation as measured by the CPI, providing both the landlord and tenant a fair mechanism to adjust the financial terms of the lease in relation to economic conditions.

By linking the lease terms directly to the CPI, the escalator clause helps protect landlords from potential losses due to inflation, while also offering tenants a level of predictability regarding how much their rent may change over time. Thus, it serves as a practical solution to align rental rates with market conditions, making it particularly relevant in environments with fluctuating prices.

Other lease provisions, such as a fixed-rate clause, would set a constant rate for the duration of the lease, and a renewal option provides the tenant the right to extend the lease under predetermined conditions but does not allow for rent adjustments based on CPI. A termination clause outlines the conditions under which a lease can be ended, without any relation to economic indices like the CPI.