Between 1991 and 2008, the Federal Minimum Wage Increased from $4.25

question 19

Multiple Choice

Between 1991 and 2008, the federal minimum wage increased from $4.25 per hour to $6.55 per hour, while the CPI increased from 136.2 to 215.3. We can conclude from this that

• A) the minimum wage increased in nominal and in real terms.
• B) the minimum wage decreased in nominal terms but increased in real terms.
• C) the minimum wage increased in nominal terms but decreased in real terms.
• D) more information is needed to determine what happened to the real minimum wage over the period.

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