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1) If John's nominal salary increases 3 percent during a year when inflation is 3

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1)

If John's nominal salary increases 3 percent during a year when inflation is 3.5 %, what has happened to her real income ?

a)It has increased by .5%

b)It has decreased by 3.5%

c)It has decreased by .5%

d)It has increased by 3 %

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