In the Graph Below, as the Consumer Moves from Indifference

question 52

Multiple Choice

In the graph below, as the consumer moves from indifference curve 1 to 3, his

• A)real income is rising and his nominal income is constant.
• B)real income is falling, and his nominal income is rising.
• C)real income is falling and nominal income is constant.
• D)real and nominal income are falling, but he can buy more anyway.

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