Recall the Application about the impact inflation has on your potential future salary and the repayment of student loans to answer the following question(s).
-In considering the costs involved for student loans that must be repaid in ten years, this Application is addressing the economic concept of
A) the marginal principle.
B) the principle of voluntary exchange.
C) the principle of diminishing returns.
D) the real-nominal principle.

Question

Quizplus · Accepted Answer

The application is addressing the concept of inflation and its impact on future salary and loan repayment. The real-nominal principle states that inflation affects the purchasing power of money, and thus the actual value of nominal amounts (such as salaries and loans) changes over time. Therefore, D is the correct answer. A, B, and C are not directly related to this economic concept.

Recall the Application About the Impact Inflation Has on Your