If Justine's Money Wages Tripled from 2015 to 2020 and the Consumer

question 59

Multiple Choice

If Justine's money wages tripled from 2015 to 2020 and the consumer price index tripled,we would know that Justine's real wages

• A)fell substantially.
• B)fell slightly.
• C)stayed the same.
• D)rose slightly.
• E)rose substantially.

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Definitions:

Bond Discount

The gap between the nominal value of a bond and the price it fetches on the market when it is sold for an amount lower than its nominal value.

Straight-Line Amortization

A method of systematically reducing the cost value of an intangible asset over its useful life by charging equal expense amounts to each accounting period.

Effective-Interest Method

A method of calculating the interest expense on a bond or loan by applying the constant interest rate to the outstanding balance of the debt for each period.

Bond Discount

The discrepancy between a bond's nominal value and its market price when it is traded at a price below its nominal value.