Between 1994 and 2004,Jack's Salary Increased from $100,000 to $200,000

question 157

Multiple Choice

Between 1994 and 2004,Jack's salary increased from $100,000 to $200,000 per year and the price index increased from 100 to 300 during the same period.Which of the following statements best describes Jack's situation?

• A)his real income and money income have both increased
• B)his real income increased and money income decreased
• C)his real income and money income both decreased
• D)his real income decreased and money income increased
• E)his real income and money income remained unchanged

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Definitions:

Consumer Paper

Consumer paper consists of financial documents and instruments that reflect personal indebtedness, such as loans, mortgages, and credit agreements.

Holder in Due Course

A party that holds a negotiable instrument and has certain rights to payment not subject to defenses.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee named on the document.

Holder in Due Course

An individual in possession of a negotiable instrument, obtained in good faith and for value, and thereby has specific rights to enforce the instrument.