Agreements that fix the time and terms in current dollars under which a business firm will compensate its employees, creditors and other suppliers are known as:
A) Inflation-adjusted agreements
B) Purchasing-power contracts
C) Nominal contracts
D) Inflation-linked contracts
E) None of the above

Question

Quizplus · Accepted Answer

Nominal contracts fix the terms of compensation in current dollars without adjustments for inflation, specifying the exact amounts to be paid or received.

Agreements That Fix the Time and Terms in Current Dollars