Suppose That a Person's Nominal Income Rises from $10 000

question 40

Multiple Choice

Suppose that a person's nominal income rises from $10 000 to $11 000 and the consumer price index rises from 100 to 105.The person's real income will:

• A)fall by about 5 percent
• B)fall by about 1 percent
• C)rise by about 5 percent
• D)rise by about 10 percent
• E)rise by about 1 percent

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