Multiple Choice
Under which of the following circumstances would we observe the greatest increase in real income?
A) Nominal income falls by 2 percent, and the price level falls by 10 percent.
B) Nominal income rises by 8 percent, and the price level rises by 4 percent.
C) Nominal income rises by 15 percent, and the price level rises by 12 percent.
D) Nominal income falls by 4 percent, and the price level rises by 6 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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