Last year the Olsen family earned $70,000. This year their income is $77,000. In an economy with an inflation rate of 8 percent, we can conclude that the Olsen's nominal income:

A. and real income both increased.
B. and real income both decreased.
C. increased, but their real income decreased.
D. decreased, but their real income increased.

Answer: A

Economics

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As demand for MP3 music downloads increases, other things being equal, we can expect

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