Rate of increase in a persons nominal income

Assignment Help Business Economics

Reference no: EM13796398

If the rate of inflation in consumer prices is less than the rate of increase in a person's nominal income, that person's:

A. market basket will expand.

B. purchasing power increases.

C. purchasing power decreases.

D. real income declines.

Reference no: EM13796398

Questions Cloud

Find the ATR of someone with a taxable income : A nation has a tax rate of 20% on the first $20,000 of taxable income, 30% on the next $30,000, 40% on the next $20,000 and then 50% on all taxable income above $70,000. Find the ATR of someone with a taxable income of $100,000. How much is a tax cre..

Exclusion of municipal bond interest from income taxation : Construct a numerical example to show that the exclusion of municipal bond interest from income taxation is equivalent to a government subsidy of state and local capital spending. Explain why it costs the government (taxpayers) more to subsidize this..

People consuming their income rather than saving-investing : Economic growth completely depends on people consuming their income rather than saving and investing. Because patents provide strong incentives to develop new technologies, they tend to help to increase economic growth. Which of the following is not ..

Distinguish between hidden characteristics and hidden action : Define asymmetric information. Distinguish between hidden characteristics and hidden actions. Which type of asymmetric information contributes to the principal-agent problem?

Rate of increase in a persons nominal income : If the rate of inflation in consumer prices is less than the rate of increase in a person's nominal income, that person's:

Explain the difference between positive-negative externality : Explain the difference between a positive and negative externality. In your analysis, make sure to provide an example of each type of externality. Why does the government need to get involved with externalities to bring about market efficiency? What ..

Analyze the determinants of the price elasticity of demand : Analyze the determinants of the price elasticity of demand and determine if each of the following products are elastic or inelastic:

What is the programmed management : What is the programmed management approach in international marketing and advertising? How are Kraft Heinz, P&G, Nestle, and Starbucks are handing this?

What are the pros and cons of bigness : Can firm losing money go out of business in the short run? If it can’t, explain why not. On what basis does a firm decide whether or not to shut down? On what basis does it decide whether or not to go out of business? If the perfect competitor is los..

User Account

All Pages