If a Country Experiences Persistently Low Inflation,which of the Following

question 31

Multiple Choice

If a country experiences persistently low inflation,which of the following tends NOT to occur?

• A)wage indexation will become less important
• B)nominal wages will be set for shorter periods of time
• C)the markup over labor costs will decrease
• D)all of the above

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Definitions:

ROA

Return on Assets; a financial ratio indicating how profitable a company is relative to its total assets.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how well a company uses investments to generate earnings growth.

Times-Interest-Earned Ratio

This financial metric measures a company's ability to meet its debt obligations based on its current income, calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.

Net Increase

The difference between the current period's value and the previous period's value when the current period's value is greater than the previous one.