If Nominal Income Increases,then Real Income

question 73

Multiple Choice

If nominal income increases,then real income

• A) increases.
• B) increases if the price index falls.
• C) increases if the percent increase in price index rises by more than the percent change in nominal income.
• D) increases if you buy only the goods included in the consumer price index (CPI)and the majority of those goods get cheaper.
• E) decreases.

---

Definitions:

Long-Term Investments

Long-Term Investments are assets that a company intends to hold for more than one fiscal year, often including stocks, bonds, or real estate.

Property, Plant, and Equipment

Long-term assets used in the production of goods and services, such as buildings, machinery, and vehicles.

Current Liability

A company's debts or obligations that are due to be paid to creditors within one year.

Coming Year

The subsequent year or the next twelve months.