Norma complains that she is not receiving the full benefit of her six percent raise, because inflation is two percent. You tell her that nominal incomes tend to rise with inflation, therefore
a. she really is worse off.
b. her real income increased eight percent.
c. menu costs have reduced her purchasing power.
d. she is committing the inflation fallacy.
d
Economics
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Indicate whether the statement is true or false
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Economic capital refers to:
What will be an ideal response?
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Refer to the given diagram. The marginal propensity to save is equal to:
A. CD/0D.
B. 0B/0A.
C. 0A/0D.
D. CD/BD.
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Microeconomics and macroeconomics are closely intertwined
a. True b. False Indicate whether the statement is true or false
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