Suppose a new Concordia University graduate will have an annual nominal income of $35,000 for the first year she works. If the annual inflation rate is 10 percent, what salary would she need in the second year to maintain the same real income?
a. $35,000
b. $40,000
c. 31,500
d. 38,500
Answer: d. 38,500
You might also like to view...
When 1983 is the CPI base year, the CPI value is 82.4 for 1980 and 172.2 for 2000. Suppose we want to convert this CPI series to have a base year of 2000 (that is, CPI2000 = 100). What is the value of the revised CPI for 1980?
A) 172.2 B) 100 C) 47.9 D) 209.0
When we demand Mexican pesos, the price we pay for those pesos is the:
A. exchange rate. B. interest rate. C. savings rate. D. prime rate.
National health insurance programs:
A. can increase use of health clinics versus traditional village doctors, who often have no training. B. are starting to be implemented in poorer areas like Ghana to increase access to health care. C. still face challenges in some areas to provide good, high quality care. D. All of these statements are true.
Dumping occurs when a foreign country sells its products at prices: a. below their costs
b. below the prices for which they are sold in their domestic market. c. higher than the price for which it is sold in their domestic market. d. both (a) and (b)