One family earned an income of $28,000 in 1990.Over the next five years, their income increased by 15%, while the CPI increased by 12%.After five years, this family's nominal income ______, and their real income ______.
A)decreased; also decreased
B)decreased; increased
C)increased; did not change
D)increased; also increased

Question

Quizplus · Accepted Answer

The family's nominal income increased by 15%, which is higher than the 12% increase in the CPI, indicating that their real income also increased.

One Family Earned an Income of $28,000 in 1990