If You Get an 8 Percent Increase in Your Nominal

question 252

Multiple Choice

If you get an 8 percent increase in your nominal income,your real income

• A)definitely increases.
• B)increases only if the inflation rate is more than 8 percent.
• C)increases only if the inflation rate is equal to 8 percent.
• D)increases only if the inflation rate is less than 8 percent.
• E)increases if the inflation rate is more than or equal to 8 percent.

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Definitions:

Free On Board

A shipping term indicating whether the seller or the buyer is responsible for goods that are damaged or destroyed during shipping.

Sales Tax

A government-imposed charge on the sale of goods and services.

Account Receivable

Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.

Credit Terms

Terms for payment on account by the buyer to the seller.