Which of These Statements Is NOT Correct

question 5

Multiple Choice

Which of these statements is NOT correct?

• A) If your nominal wages rise at a rate higher than the inflation rate,you have received a "real" pay raise.
• B) If your nominal wages rise at exactly the rate of inflation,your purchasing power over time remains constant.
• C) If your nominal wages rise at 4% while inflation rises at 5%,you have essentially received a "pay cut."
• D) If deflation occurs,you will receive a "real" pay raise regardless of what happens to your nominal wage.

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Definitions:

Treaty of Versailles

The peace treaty that ended World War I in 1919, imposing heavy reparations and territorial losses on Germany.

League of Nations

An international organization established after World War I intended to maintain world peace and prevent future conflicts.

Senate

One of the two chambers of the United States Congress, responsible for making federal laws and composed of senators from each state.

Foreign Policy

A government's strategy in dealing with other nations, determining how they interact with other countries politically, economically, and militarily.