Which of the following is correct?
A) People whose nominal incomes rise slower than the rate of inflation gain purchasing power.
B) Real income equals nominal income multiplied by the CPI as a decimal.
C) The percentage change in real income equals the percentage change in nominal income plus the percentage change in CPI.
D) The actual number of dollars received is called a nominal income.
Correct Answer:
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Q21: Suppose you deposit $10 000 in a
Q22: If the rate of inflation in a
Q23: Consider borrowers and lenders who agree to
Q24: A person pays cash for a house
Q25: A person pays cash for a house
Q27: When inflation is low and stable, firms:
A)
Q29: The real interest rate is defined as
Q29: The CPI (using a 1982 base year)
Q30: The CPI is called:
A) a variable price
Q31: Suppose the inflation rate is 10 per
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