If There Is Inflation and We Compare the Changes in a Nominal

question 86

Multiple Choice

If there is inflation and we compare the changes in a nominal variable over time versus its real counterpart, such as the nominal wage rate versus the real wage rate, we find that the

• A)nominal wage rate increases faster because of inflation.
• B)real wage rate increases faster because of inflation.
• C)two change at a rate that does not depend on the inflation rate.
• D)two increase at about the same rate because of inflation.
• E)two decrease at about the same rate because of inflation.

---

Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is global in scope.

Non-Controlling Interest

The portion of a subsidiary corporation's equity that is not owned by the parent corporation.

Consolidated Balance Sheet

A financial statement that summarizes the financial position of a parent company and its subsidiaries.

Fair Value

The proceeds from the sale of an asset or the outlay to move a liability in a non-chaotic market operation on the date of gauging.