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mina [271]
3 years ago
14

Employees at the university have negotiated a 5 percent increase in wages for the next year, based on their inflation expectatio

ns. If inflation is actually 4 percent over the next year, which of the following will occur?
A. Unemployment of university employees will fall.
B. Real wages for university employees will rise.
C. Inflation will be 5 percent the following year.
D. The decrease in inflation is expected
Business
1 answer:
Trava [24]3 years ago
8 0

Answer:

B. Real wages for university employees will rise.

Explanation:

Increase in income is @ 5%, and that the actual inflation is only 4% that is less than the increase in income. Accordingly, the company is paying more to the employees, and accordingly their wages have increased.

The amount of money available in real terms is more than the actual money, held by the employees earlier.

This is all because the actual increase in inflation rate is less than the increase in salary of employees.

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5 0
3 years ago
Assume that the reserve requirement for the commercial banks is 25%. If the Federal Reserve Banks buy $3 billion in government s
faltersainse [42]

Answer:

The lending ability will increase by $2.25 billion.

Explanation:

The reserve requirement is given at 25%.

If federal reserve bank buys $3 billion in government securities, the total reserve will increase by $3 billion.

The excess reserve will be

=Increase in total reserve-required reserve

=$3 billion-25% of $3

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5 0
3 years ago
Financial information is presented below: Operating Expenses $ 91100 Sales Returns and Allowances 17000 Sales Discounts 12400 Sa
ira [324]

Answer:

$290,700

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Net sales = Sales revenue - Sales discount - Sales return and allowance

Net sales = $320,100 - $12,400 - $17,000

Net sales = $290,700

8 0
3 years ago
Your primary motivation for investing is for tax savings.<br><br> True<br><br> or <br><br> False
kipiarov [429]
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8 0
3 years ago
Which one makes sense?
Ratling [72]
I am thinking the second one
7 0
3 years ago
Read 2 more answers
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