If nominal income increases, then real income

a. increases if you buy only the goods included in the consumer price index (CPI) and the majority of those goods get cheaper.

b. increases if the price index falls.

c. increases.

d. decreases.

e. increases if the percent increase in price index rises by more than the percent change in nominal income.

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

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