Unformatted text preview: Remember inflation? If our nominal income is constant over the years, then our real income will be decreasing as inflation erodes the value of our “fixed” nominal income. What will happen to our standard of living as time progresses with a “fixed” nominal income? It will most probably erode with the declining purchasing power of our constant (fixed) income....
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This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.
- Fall '10