Which of the Following Is an Example of the Income

Multiple Choice

Which of the following is an example of the income effect during a period of inflation?

A) You buy lots of peanut butter,which decreases in price while the price level rises
B) You own stock that increases in value more rapidly than the price level does
C) You own a house,and its value rises at the same rate as the price level does
D) Your income is fixed and does not increase even though the price level is rising