Which of the Following Is Correct

Multiple Choice

Which of the following is correct?

A) If nominal income increases,then real income must also increase.
B) If real income increases,then nominal income must also increase.
C) Inflation reduces the purchasing power of the dollar but increases real income.
D) If nominal income increases,then real income may either increase or decrease.
E) Inflation increases the purchasing power of the dollar but reduces real income.