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If You Get an 8 Percent Increase in Your Nominal

Question 199

Multiple Choice

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


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

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