Which of the Following Statements Is Correct

Multiple Choice

Which of the following statements is correct?

A) Real and nominal incomes always move in the same direction.
B) Inflation increases the purchasing power of the dollar and necessarily reduces one's nominal income.
C) Inflation reduces the purchasing power of the dollar and necessarily reduces one's real income.
D) Inflation reduces the purchasing power of the dollar, but does not necessarily reduce one's real income.
E) Inflation increases the purchasing power of the dollar, but does not necessarily reduce one's real income