i need both answer i will 10 upvotes Consider a person borrowing money at a 9% annual interest, in a non-indexed contract. If theinflation for that year is 5%, which of the following sentences is correct?The lender collects 9% in real annual interestIf the contract were indexed, the borrower would end up paying 4% in real annual interestThe borrower ends up paying 14% in real annual interestBecause the contract is not indexed, the borrower only pays 4% in real annual interest Analyze the graph below, showing data for the evolution of the minimum wage in the UnitedStates. Which of the following is correct?Minimum Wage (3)161412-108-64-2-01Real(2010)NominalThe real wage decline after 1985 and the nominal wage increase for the same period indicates that, althoughthe legislation increased the minimum wage, the inflation rose more than proportionally, generating adecrease in the standards of living for minimum wage earnersThe real wage decline after 1985 and the nominal wage increase for the same period indicates that, althoughthe legislation increased the minimum wage, the inflation rose more than proportionally, generating anincrease in the standards of living for minimum wage earnersFrom the beginning of the series to 1970, nominal wage was constant and real wages were decreasing.indicating that that was a deflationary period for the United StatesFrom 1980 to 1985, the US saw a rise in nominal wages with a more than proportional rise in inflation

First Image Issue:The issue introduced in the first image is an inquiry concerning the actual…

Analyze the graph below, showing data for the evolution of the minimum wage in the United States. Which of the following is correct? Minimum Wage (5) 16 14 12 10 80 A 2- 0 1990 Real(2010) Year Nominal

Analyze the graph below, showing data for the evolution of the minimum wage in the United States. Which of the following is correct? Minimum Wage (5) 16 14 12 10 80 A 2- 0 1990 Real(2010) Year Nominal

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 4P

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Question

i need both answer i will 10 upvotes

Consider a person borrowing money at a 9% annual interest, in a non-indexed contract. If the
inflation for that year is 5%, which of the following sentences is correct?
The lender collects 9% in real annual interest
If the contract were indexed, the borrower would end up paying 4% in real annual interest
The borrower ends up paying 14% in real annual interest
Because the contract is not indexed, the borrower only pays 4% in real annual interest

Analyze the graph below, showing data for the evolution of the minimum wage in the United
States. Which of the following is correct?
Minimum Wage (3)
16
14
12-
10
8-
6
4-
2-
0
1
Real(2010)
Nominal
The real wage decline after 1985 and the nominal wage increase for the same period indicates that, although
the legislation increased the minimum wage, the inflation rose more than proportionally, generating a
decrease in the standards of living for minimum wage earners
The real wage decline after 1985 and the nominal wage increase for the same period indicates that, although
the legislation increased the minimum wage, the inflation rose more than proportionally, generating an
increase in the standards of living for minimum wage earners
From the beginning of the series to 1970, nominal wage was constant and real wages were decreasing.
indicating that that was a deflationary period for the United States
From 1980 to 1985, the US saw a rise in nominal wages with a more than proportional rise in inflation

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