One Family Earned an Income of $28,000 in 1995

Multiple Choice

One family earned an income of $28,000 in 1995. Over the next five years, their income increased by 15 percent, while the CPI increased by 12 percent. After five years, this family's nominal income ________, and their real income ________.

A) decreased; decreased
B) decreased; increased
C) increased; did not change
D) increased; increased