If Workers Received a 5 Percent Wage Increase and the Rate

question 159

Multiple Choice

If workers received a 5 percent wage increase and the rate of inflation was 5 percent, then their real wage:

• A)increased.
• B)decreased.
• C)remained constant.
• D)equaled the nominal wage.

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Definitions:

Deposit Insurance

A government guarantee to depositors in banks and other financial institutions, ensuring the safety of their deposits up to a certain limit, in case the institution fails.

FDIC

Federal Deposit Insurance Corporation; a U.S. government agency that insures deposits at banks and thrift institutions, providing financial stability and protecting depositors.

Call Bonds

Bonds that can be redeemed by the issuer before their maturity date, typically at a premium, giving issuers flexibility in refinancing opportunities.

Market Interest Rates

The prevailing rate of interest available in the marketplace on loans and deposits, influenced by factors such as supply and demand, government policy, and economic conditions.