-The Table Above Has Information About the CPI, Nominal Wage

question 258

Multiple Choice

-The table above has information about the CPI, nominal wage rate, and nominal interest rate for the country of Syldavia for the years 2009 to 2011.The reference base year is 2009.The real interest rate in Syldavia during 2011 was

• A) 2.8 percent.
• B) 5.2 percent.
• C) 9.0 percent.
• D) 0.6 percent.
• E) 8.4 percent.

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Definitions:

Wage Base Limits

The maximum amount of income that is subject to social security or other payroll taxes within a tax year.

Payroll Tax Expense

The employer’s expense associated with the employment taxes (Social Security, Medicare, and unemployment taxes) on the wages paid to employees.

Federal Unemployment Taxes

Taxes paid by employers based on employee wages/salaries to fund unemployment compensation to workers who have lost their jobs.

Medical Insurance

Health care insurance for which premiums may be paid through a deduction from an employee’s paycheck.