If nominal wage rates increase by 2 percent per year and the ...

[a0266361136]

If nominal wage rates increase by 2 percent per year and the price level increases by 5 percent per year, real wages will:
 a. increase by 3 percent per year.
  b. increase by 5 percent per year.
  c. increase by 2 percent per year.
  d. decrease by 5 percent per year.
  e. decrease by 3 percent per year.

Question 2

Suppose an individual can earn 3 percent interest on an annual term deposit. His opportunity cost of holding 100,000 in cash instead of investing in the term deposit will be:
 a. 3,300.
 b. 330.
 c. 1,000.
 d. 6,000.
 e. 3,000.

[Chou]

Answer to Question 1

e

Answer to Question 2

e

[a0266361136]

Excellent

[steff9894]

Gracias!