Suppose That the Nominal National Income in Some Country Increased

question 32

Multiple Choice

Suppose that the nominal national income in some country increased by 10 percent during the year, when inflation was 5 percent. Therefore the real national income

• A)fell by 10 percent.
• B)fell by 5 percent.
• C)was unaffected.
• D)rose by 5 percent.
• E)rose by 10 percent.

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Definitions:

Promisee

The individual or entity to whom a promise or commitment is made, typically in a contractual agreement.

Benefiting Party

An individual or group that receives advantages or profits from a particular action or agreement.

Donee Beneficiary

A third party that benefits from a contract between two other parties, especially in a gift or donation context.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights of the involved parties.