Could someone explain to me what Indexing Theory is?

[Kevin]

Could someone explain to me what Indexing Theory is in terms of public opinion and foreign policy?

I ask because I have an exam this week in one of my foreign policy classes and for the study guide this part is left blank, and I can't find an accurate definition any where else.

Thanks to anyone who provides me with a correct definition for this term.
 

[Torie]

Indexing is a term usually used to adjust expenditures over time in real dollars, rather than nominal ones, so that the effect of inflation is adjusted out. It is also an investment term, for an investment in a basket of assets, usually via a mutual or exchange traded fund, that tries to replicate the price movements of a published index, such as the S and P 500 or whatever.