Which of These Statements Is NOT Correct

question 5

Multiple Choice

Which of these statements is NOT correct?

• A) If your nominal wages rise at a rate higher than the inflation rate,you have received a "real" pay raise.
• B) If your nominal wages rise at exactly the rate of inflation,your purchasing power over time remains constant.
• C) If your nominal wages rise at 4% while inflation rises at 5%,you have essentially received a "pay cut."
• D) If deflation occurs,you will receive a "real" pay raise regardless of what happens to your nominal wage.

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