Suppose That Nominal National Income in Some Country Increased by 10

question 42

Multiple Choice

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

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

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Definitions:

Current Yield

A financial metric that calculates the annual interest income from an investment as a percentage of its current market price.

Dividend Yield

A metric that indicates the annual dividend payment of a corporation as a proportion of its share price.

Discount Yield

A measure of a bond's return, calculated as the bond's discount from its face value divided by its face value, expressed as a percentage.