Author Question: When the inflation rate rises, the purchasing power of nominal income: a. remains unchanged. b. ... (Read 119 times)

sarasara · **on:** Jun 30, 2018

When the inflation rate rises, the purchasing power of nominal income:
a. remains unchanged.
b. decreases.
c. increases.
d. changes by the inflation rate minus one.

Question 2

The tax multiplier is greater than the spending multiplier regardless of the value of the marginal propensity to consume (MPC).
a. True
b. False
Indicate whether the statement is true or false