economics Need help immediatly

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

  1. 👍
  2. 👎
  3. 👁
  1. I would go with b) if it causes an increase in nominal wages BY THE SAME PERCENTAGE AMOUNT.

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. math

    Please someone show me how to work this one out? Suppose Caroline is a cinephile and buys only movie tickets. Caroline deposits $3000 in a bank acct that pays an annual interest rate of 20%. You can assume that this interest rate

  2. Algebra 1- Urgent

    The price of products may increase due to inflation and decrease due to depreciation. Derek is studying the change in the price of two products, A and B, over time. The price f(x), in dollars, of product A after x years is

  3. algebra 2

    When inflation causes the price of an item to increase the new cost C and the original cost c are related by the formula C=c(1+r)^n, where r is the rate of inflation per year as a decimal and n is the number of years. What would

  4. spanish

    Yo ______ lavo ______ manos y ______ cara. ______ cepillo ______ dientes y ______ cepillo ______ pelo. Yo ______ pongo ______ ropa.

  1. Math Help!!

    When the owner of a gas station sets the price of 1 gallon of unleaded gasoline at 2$, he can seek approximately 20,000 gallons per day. When he sets the price of gas at 5$ per gallon, he can sell approximately 14,000 gallons per

  2. Consumer Math

    1. Ken bought a car last year to drive back and forth to work. Last year he spent $1,098 on gas. This year, it was $1,562. What is the inflation rate? a. About 51% b. About 42% c. About 20% d. About 39% I believe it is b is this

  3. economics

    which of the following statements about inflation are true? check all that applies a) policy makers also worry about a negative inflation rate, or deflation b) painful government actions may sometimes be necessary to bring down a

  4. math

    Which of the following salaries will have a purchasing power of $24,035 if the inflation rate is five percent? A-$25,815 B-$27,523 C-$26,000 D-$25,300

  1. Math

    2.The price of products may increase due to inflation and decrease due to depreciation. Derek is studying the change in the price of two products, A and B, over time. The price f(x), in dollars, of product A after x years is

  2. consumer math

    You made $3000 on a part-time job last year. If you expect to make the same amount this year, and the inflation rate is three percent, what is your purchasing power?

  3. Math

    You made $3000 on a part time job last year. If you expect to make the same amount this year and the inflation rate is 3%, what is your purchasing power?

  4. social studies

    Inflation is defined as a rise in the general level of prices. When inflation occurs, the buying power of the dollar would. A. increase B.decrease C.remain stable D. not be affected by inflation

You can view more similar questions or ask a new question.