With Sticky Nominal Wages, a Monetary Expansion Causes

question 20

Multiple Choice

With sticky nominal wages, a monetary expansion causes:

• A) real wages to rise.
• B) the price level to rise.
• C) nominal wages to fall.
• D) real interest rates to rise.
• E) None of these answers is correct.

---

Definitions:

Chance

The occurrence of events in the absence of any obvious intention or cause; luck.

Good Performance

The successful completion of tasks or achievement of objectives to the standards of the role or organization.

Relationships

Pertains to the manner in which individuals or entities are connected or relate to each other, often implying a state of connection involving emotional or professional ties.

Competence

The ability to do something successfully or efficiently, often referring to specific skills or knowledge.