If there is inflation and we compare the changes in a nominal variable over time versus its real counterpart,such as the nominal wage rate versus the real wage rate,we find that the
A) two increase at about the same rate because of inflation.
B) real wage rate increases faster because of inflation.
C) nominal wage rate increases faster because of inflation.
D) two decrease at about the same rate because of inflation.
E) two change at a rate that does not depend on the inflation rate.
Correct Answer:
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