A household’s income increased by 3%. Over the same period, the rate of inflation was also 3%.
Which statement is correct?
1 )
Both the nominal income of the household and the real income of the household increased by 3%.
2 )
The nominal income of the household remained unchanged while the real income of the household increased by 3%.
The nominal income of the household increased by 3% while the real income of the household remained unchanged.
4 )
The nominal income of the household increased by 3% while the real income of the household increased by 6%.
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