Nominal incomes generally increase with inflation because
A. when inflation is anticipated, average nominal incomes also increase by the same percentage as the rate of inflation.
B. even anticipated inflation causes average nominal incomes to fall as prices increase.
C. when inflation is anticipated, real incomes also increase by the same percentage as inflation.
D. when inflation is unanticipated, average nominal incomes also increase by the same percentage as inflation.
Answer: A. when inflation is anticipated, average nominal incomes also increase by the same percentage as the rate of inflation.