Suppose Frank Received a 5 Percent Increase in His Nominal

Multiple Choice

Suppose Frank received a 5 percent increase in his nominal wage.Over the year, inflation ran about 2 percent.Which of the following describes how Frank's nominal and real wages were affected?  

A)  Frank's nominal wage increased and his real wage increased. 
B)  Frank's nominal wage decreased and his real wage decreased. 
C)  Frank's nominal wage increased and his real wage decreased. 
D)  Franks' nominal wage decreased and his real wage increased.