Select the Normative Statement That Completes the Following Sentence: If

question 29

Multiple Choice

Select the normative statement that completes the following sentence: If the minimum wage is raised:

• A) cost per unit of output will rise.
• B) workers will gain their rightful share of total income.
• C) the rate of inflation will increase.
• D) profits will fall.

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Definitions:

Nominal Risk-Free Rate

The rate of return on an investment with no risk of financial loss, not adjusted for inflation.

Yield Curve

A curve representing the yields of bonds with the same creditworthiness but varying expiration dates, measured at a specific moment.

Term Structure

The relationship between the interest rates or yields of bonds and their respective maturities.

Federal Government Bonds

Securities issued by a national government's treasury, often considered low-risk investments.