If an Individual Is Living in a Period of Continued

Multiple Choice

If an individual is living in a period of continued high inflation on a fixed income, then:

A) the cost of the goods and services he or she buys decreases and his or her real income increases.
B) the cost of the goods and services he or she buys increases and his or her real income increases.
C) the cost of the goods and services he or she buys increases, but his or her real income remains the same.
D) the cost of the goods and services he or she buys increases and his or her real income decreases.
E) the cost of the goods and services he or she buys decreases and his or her real income remains the same.