Why is price inflation sometimes good in a recession?

A. Price inflation makes it harder for real wages to fall.
B. Price inflation makes it harder for real wages to rise.
C. Price inflation makes it easier for real wages to rise.
D. Price inflation makes it easier for real wages to fall.

Answer: D. Price inflation makes it easier for real wages to fall.

Economics

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If the banking system has a required reserve ratio of 25 percent, then the money multiplier is

A) 2. B) 4. C) 5. D) 10.

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The U.S. dollar is backed by ____________.

Fill in the blank(s) with the appropriate word(s).

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