An Individual Holds $20 000 in an Interest-Earning Checking Account

Multiple Choice

An individual holds $20 000 in an interest-earning checking account earning 10% interest,and the overall price level rises by 12%.Other things constant,we would expect

A) the individual's real wealth to decrease and consumption to diminish.
B) the individual's stock of real wealth to decrease but real national income to increase.
C) no change in the individual's real wealth but a decline in real national product.
D) real wealth has gone down by 12%.