Which of the Following Statements Is Correct

question 77

Multiple Choice

Which of the following statements is correct?

• A)If a contract is stated in nominal terms,unanticipated inflation will increase the value of the contract.
• B)COLAs adjust wage levels to take into account the consumer price index.
• C)Whenever inflation is unanticipated,it affects prices and wages the same,so workers' purchasing power remains unchanged.
• D)Unanticipated inflation means that all prices are rising at the same rate.

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Definitions:

American Opportunity Tax Credit

A credit for qualified education expenses paid for an eligible student for the first four years of higher education.

Postsecondary Education

Refers to all education that takes place after high school, including university degrees, vocational training, and community college courses.

Adoption Credit

A tax credit offered to adoptive parents to cover qualifying expenses related to the adoption of a child.

Domestic Adoptions

The process of legally adopting a child who is a citizen of the same country as the adoptive parents, through the country's legal system.