If Deflation Is 0

question 148

Multiple Choice

If deflation is 0.5 percent per year and you receive a 1 percent decrease in your salary,then your

• A)Real income falls,but your nominal income remains unchanged.
• B)Real and nominal income both fall.
• C)Real income remains unchanged,but your nominal income rises.
• D)Real and nominal income both rise.

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Definitions:

Pleasurable Sensation

A feeling of enjoyment or satisfaction experienced through various stimuli, which can be physical, emotional, or cognitive.

Satin Edge

A type of fabric finish where the edge is made with satin, giving it a smooth, glossy appearance.

Adaptation

Piaget’s term for adjustment to new information about the environment, achieved through processes of assimilation and accommodation.

Circular Reactions

Piaget’s term for processes by which an infant learns to reproduce desired occurrences originally discovered by chance.