Suppose that a person's nominal income rises by 5 percent and the price level rises from 125 to 130. The person's real income will
a) rise by about 4 percent.
b) rise by about 1 percent.
c) remain constant.
d) fall by about 1 percent.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Suppose that a person's nominal income rises by 5 percent and the price level rises from 125 to 130. The person's real income will a) rise ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Carbondale Oil announces that a well that it has sunk in a new oil province has shown the existence of substantial oil reserves.
Answers (1)
Social Security payments are indexed for inflation using the CPI. A recent newspaper editorial claimed that Social Security recipients are harmed by years of low inflation because they do not receive as large an increase in their payments as they do
Answers (1)
Mandy, a 9-month-old infant, saw a little girl in a toy store pushing buttons on a musical toy that plays a different song for each button.
Answers (1)
ncome bonds pay interest only if the issuing company actually earns the indicated interest. Thus, these securities cannot bankrupt a company, and this makes them safer from an investor's perspective than regular bonds. a. True b. False
Answers (1)
Research suggests that boards of directors perform better if: a. outside directors own significant equity in the organization. b. the board includes employees as voting members. c. the board is homogenous in composition. d.
Answers (1)
New Questions in Business
Wims, inc., has current assets of $6,000, net fixed assets of $25,100, current liabilities of $4,950, and long-term debt of $12,000. a. What is the value of the shareholders' eq
Answers (1)
Businesses are most likely to grow during which of the following phases of the business cycle? A. expansion B. contraction C. trough D. recession
Answers (1)
Zero Corp. suffered a loss having a material effect on its financial statements as a result of a customer's bankruptcy that rendered a trade receivable uncollectible.
Answers (2)
Upward communication among organizational members at the same level can facilitate task coordination, provide means of sharing information, provide formal channel of communication for problem solving, and facilitate mutual support for staff involved.
Answers (1)
Last year, a women's professional organization made two small-business loans totaling $23,000 to young women beginning their own businesses. The money was lent at 9% and 11% simple interest rates.
Answers (1)