The CPI equals 1.00 in year one and 1.15 in year two. If the nominal wage is $15 in year one and a contract calls for the wage to be indexed to the CPI, what will be the nominal wage in year two?
A. $17.25
B. $15.00
C. $22.50
D. $16.15
Answer: A
You might also like to view...
Banks cannot influence the money supply if they are required to hold all deposits in reserve
a. True b. False Indicate whether the statement is true or false
A bank has $100,000 in checkable deposits and $30,000 in reserves. If the required reserve ratio is 10%, what is the amount of required reserves?
A) $0 B) $10,000 C) $20,00 D) $30,000
Figure 10-6
?
In Figure 10-6, which graph best illustrates an autonomous increase in consumption spending?
A. (1) B. (2) C. (3) D. (4)
The buying and selling of foreign currency by the central bank is a trade policy whose objective is:
A. reducing purchases of assets abroad. B. stabilizing the exchange rate against external shocks. C. stabilizing the interest rate against foreign capital outflows. D. promoting long term economic growth.