In a given year, a country's nominal income rose by 8 percent and its price level rose by 5 percent. We can conclude that the country's real income:

a) May have either increased or decreased
b) Rose by 13 percent
c) Rose by 3 percent
d) Fell by 13 percent
e) Fell by 3 percent

Ans: c) Rose by 3 percent

Business

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