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If Nominal Income Increases,then Real Income

Question 73

Multiple Choice

If nominal income increases,then real income


A) increases.
B) increases if the price index falls.
C) increases if the percent increase in price index rises by more than the percent change in nominal income.
D) increases if you buy only the goods included in the consumer price index (CPI) and the majority of those goods get cheaper.
E) decreases.

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