If Real Income Increases,then

question 115

Multiple Choice

If real income increases,then:

• A) nominal income increases.
• B) nominal income increases if the price index falls.
• C) nominal income rises faster than prices.
• D) nominal income remains constant but the majority of goods in the consumer price index (CPI) get cheaper.
• E) nominal income decreases.

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Definitions:

Fertile

Capable of reproducing or supporting the growth of offspring; often used in reference to soil quality or the reproductive capability of living organisms.

Menopause

A natural biological process in women marking the end of reproductive years, characterized by the cessation of menstruation.

Ovulation

The process in the menstrual cycle where a mature ovarian follicle releases an egg.

Menstruation

The monthly shedding of the uterine lining, which has thickened in preparation for the implantation of a fertilized egg.