Under which of the following circumstances would we observe the greatest increase in real income?
A. Nominal income falls by 2 percent, and the price level falls by 10 percent.
B. Nominal income falls by 4 percent, and the price level rises by 6 percent.
C. Nominal income rises by 12 percent, and the price level rises by 15 percent.
D. Nominal income rises by 8 percent, and the price level rises by 4 percent.
Answer: A
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a. True b. False Indicate whether the statement is true or false
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