Assume your salary is $2000 per month and the expectation is that over the next twelve months inflation will be 6 percent. In order to prevent a drop in your real salary over the year, your employer would have to agree to change your nominal salary by
A) 0.
B) + 12 percent.
C) + 6 percent.
D) - 6 percent.
E) - 12 percent.
Correct Answer:
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