Which of the Following Is Not an Example of Inflation

question 7

Multiple Choice

Which of the following is not an example of inflation causing a redistribution of income because the inflation was unanticipated?

• A)A firm signs a 3-year contract with a union based on a 2 percent anticipated rate of inflation per year,and the actual rate of inflation ends up being 7 percent per year.
• B)A worker receives a raise in salary that is less than the rate of inflation,because management under-predicted inflation.
• C)Firms have to hire an extra worker to change prices in its store because of inflation.
• D)A bank collects a lower amount of interest from a loan because inflation was under-predicted.

Understand the impact of body language and nonverbal signals in workplace communication.

Recognize the role and accuracy of informal communication channels such as the grapevine in organizational contexts.

Identify strategies for effective internal communication within organizations.

Appreciate the implications of digital and mobile technologies on workplace communication and productivity.

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Definitions:

Term to Maturity

The duration of time left until the expiration or due date of a financial instrument, such as a bond, at which point the principal is supposed to be paid back to investors.

Coupon

A coupon refers to the annual interest rate paid on a bond, expressed as a percentage of the face value.

Yield to Maturity

The total return anticipated on a bond if it is held until it matures, considering all payments of interest and principal.

Semiannually

Taking place semiannually, usually once every six months.