For a Consumer,which of the Following Statements About the Real-Income

Multiple Choice

For a consumer,which of the following statements about the real-income effect is true?

A) It matters only when prices change enough to cause a measurable effect on the purchasing power of a consumer's income.
B) It can be observed for any price change.
C) It occurs when a consumer buys more of a good as a result of a relative price change.
D) It matters only when prices change enough to cause a consumer to purchase more of the good whose price changed.
E) The purchasing power of your income increases when the price of a good increases.