Suppose a Recent College Graduate Has an Annual Nominal Income

question 121

Multiple Choice

Suppose a recent college graduate has an annual nominal income of $42,000 for the first year she works.If the annual inflation rate is 5 percent,what salary would she need in the second year to maintain the same real income?

• A) $39,900
• B) $42,000
• C) $42,500
• D) $44,100

---

Definitions:

Cause and Effect

The principle or concept that an action or event will produce a certain response or outcome in the natural or human-made world.

Multiple Regression

A statistical technique that models the relationship between a dependent variable and multiple independent variables.

Trach Care

The maintenance and care of a tracheostomy site to prevent infection and ensure proper functioning of the tracheostomy tube.

Acceptable Technique

A method or procedure that has been deemed suitable and sufficient by a consensus of experts or regulatory guidelines for achieving a specific task or outcome.