Multiple Choice
A person's real income will increase by 3 percent if her nominal income
A) increases by 5 percent while the price index falls by 2 percent.
B) increases by 5 percent while the price index rises by 2 percent.
C) increases by 2 percent while the price index rises by 5 percent.
D) increases by 2 percent while the price index falls by 5 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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