If you are living in a period of continued high inflation on a fixed income, the cost of the goods and services you buy ____ and your nominal income ____.
A)decreases, decreases
B)increases, increases
C)decreases, remains the same
D)increases, remains the same

Question

If you are living in a period of continued high inflation on a fixed income, the cost of the goods and services you buy ____ and your nominal income ____.
A)​decreases, decreases
B)​increases, increases
C)​decreases, remains the same
D)​increases, remains the same

Quizplus · Accepted Answer

During periods of high inflation, the cost of goods and services increases, but if you are on a fixed income, your nominal income does not change, it remains the same.

If You Are Living in a Period of Continued High