Inflation doesn't reduce purchasing power if ______.
price of essential products, such as food and gasoline, don't increase too much
it causes an increase in nominal wages
it remains under 10% per year
the Federal Reserve increases the money supply enough to offset it
economics Need help immediatly - economyst, Monday, June 23, 2008 at 9:15am
I would go with b) if it causes an increase in nominal wages BY THE SAME PERCENTAGE AMOUNT.