If Nominal Income Increases,then

Multiple Choice

If nominal income increases,then:

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