When the Inflation Rate Rises, the Purchasing Power of Nominal

question 2

Multiple Choice

When the inflation rate rises, the purchasing power of nominal income:

• A) remains unchanged.
• B) decreases.
• C) increases.
• D) changes by the inflation rate minus one.

---

Definitions:

Self-Presentation Motivation

The drive individuals have to control and shape how others perceive them, often by adjusting their behavior or appearance.

Social Anxiety

A psychological condition characterized by intense fear or anxiety in social situations, leading to avoidance or significant distress.

Global Attribution

The tendency to generalize causes of an individual's behavior to their character or personality, disregarding situational factors.

Specific Attribution

The process of identifying a particular cause for an event or behavior, distinguishing it from more general or vague attributions.