Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) Inflation improves the standard of living of persons earning fixed incomes.
B) Prolonged and severe inflation has no effect on a country's social and political institutions.
C) The real rate of interest is the nominal, or stated, rate of interest divided by the inflation rate.
D) Real income is the amount of goods and services that can be purchased with a particular amount of money income.