If your real income rises but your nominal income falls, then you benefit from deflation.
Answer the following statement true (T) or false (F)
True
In this case, the price level is falling faster than your nominal income is, so your real income rises.
You might also like to view...
After much consideration, you have chosen Cancun over Ft. Lauderdale as your Spring Break destination this year. However, Spring Break is still months away, and you may reverse this decision. Which of the following events would prompt you to reverse this decision?
a. The marginal benefit of going to Cancun increases. b. The marginal cost of going to Cancun decreases. c. The marginal benefit of going to Ft. Lauderdale decreases. d. The marginal cost of going to Ft. Lauderdale decreases.
For a corporation, issuing bonds is riskier than issuing stock.
Answer the following statement true (T) or false (F)