Which of the following is correct?
A) If nominal income increases,then real income must also increase.
B) If real income increases,then nominal income must also increase.
C) Inflation reduces the purchasing power of the dollar but increases real income.
D) If nominal income increases,then real income may either increase or decrease.
E) Inflation increases the purchasing power of the dollar but reduces real income.
Correct Answer:
Verified
Q89: If the rate of inflation is 7%
Q90: Why is inflation undesirable?
A)It redistributes income and
Q91: What is the output effect of inflation?
A)It
Q92: Assume that in 2016,prices increased by 2%
Q93: How can the percentage change in real
Q95: What is deflation?
A)A fall in the price
Q96: How is the real interest rate determined?
A)By
Q97: What is real income?
A)It is nominal income
Q98: A lender may be hurt by inflation
Q99: What is the difference between nominal income
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