If Workers and Firms Expect That Inflation Will Be 3

question 124

Multiple Choice

If workers and firms expect that inflation will be 3 percent next year,and real wages are not changing over time,by how much will nominal wages increase?

• A)3 percent
• B)more than 3 percent
• C)less than 3 percent
• D)depends on actual inflation for next year

Recognize the characteristics of money that make it effective in its various roles (divisibility, durability, acceptability, stability, portability).

Identify the instruments and accounts used for savings and their features including certificates of deposit, money market accounts, and savings accounts.

Grasp the importance of security features in the physical design of money to protect against counterfeiting.

Understand the effects of inflation on money and its purchasing power.

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Definitions:

Equal Credit Opportunity Act

A U.S. federal law that prohibits discrimination in granting credit to consumers based on race, color, religion, national origin, sex, marital status, age, or because they receive public assistance.

Creditors

Individuals or institutions that lend money or extend credit and are owed money by debtors.

Credit Request

An application for borrowing money or obtaining goods or services with the promise to pay back at a later time.

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The specified period within certain agreements or regulations where parties are required to notify others about certain conditions, changes, or events within a set timeframe.