Multiple Choice
Suppose your nominal income this year is 5 percent higher than last year. If the inflation rate for the period was 3 percent, then your real income was:
A) increased by 1.67 percent.
B) increased by 2 percent.
C) increased by 8 percent.
D) decreased by 0.6 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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