A Person'S Real Income Will Increase By 3% If Her Nominal Income:

(Correct Answer Below)

A Person'S Real Income Will Increase By 3% If Her Nominal Income:

Question 16 options: A) Increases by 2% while the price index falls by 5% B) Increases by 2% while the price index rises by 5% C) Increases by 5% while the price index rises by 2% D) Increases by 5% while the price index falls by 2%
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C) Increases by 5% while the price index rises by 2% *** NOT : D) Increases by 5% while the price index falls by 2% 5 (income) - 2 (price index) = 3

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