To ensure that a nominal payment represents a constant level of purchasing power over time, one should:
A) add a price index to it.
B) subtract a price index from it.
C) divide it by a price index.
D) increase it by a percentage equal to the rate of inflation for that year.

Question

Quizplus · Accepted Answer

The Answer of To ensure that a nominal payment represents a constant level of purchasing power over time, one should:
A) add a price index to it.
B) subtract a price index from it.
C) divide it by a price index.
D) increase it by a percentage equal to the rate of inflation for that year.

To Ensure That a Nominal Payment Represents a Constant Level