When the Nominal Price of a Good Increases Over Time

question 92

Multiple Choice

When the nominal price of a good increases over time, the real cost of buying the good

• A)does not change because income also increases over time.
• B)decreases because income also increases over time.
• C)might increase, decrease, or stay the same depending on how much income changed.
• D)must increase.
• E)might increase, decrease, or stay the same depending on how much the CPI changed.

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Definitions:

Venue

The geographical district in which an action is tried and from which the jury is selected.

Minimum Contacts

A legal principle that determines the ability of a court to exercise jurisdiction over an out-of-state defendant, based on the defendant's certain activities within the state.

Iowa State Court

The judicial branch of the state of Iowa, tasked with resolving disputes, interpreting state laws, and administering justice within its jurisdiction.

Substantial Business

A significant and material business operation that has a considerable impact on the market.