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If You Get an 8 Per Cent Increase in Your

Question 56

Multiple Choice

If you get an 8 per cent increase in your nominal income, your real income


A) definitely increases.
B) increases if the inflation rate is more than or equal to 8 per cent.
C) increases only if the inflation rate is more than 8 per cent.
D) increases only if the inflation rate is less than 8 per cent.
E) increases only if the inflation rate is equal to 8 per cent.

Correct Answer:

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