Last year the Carter family earned $50 000. This year their income is $52 000. In an economy with an inflation rate of 3 per cent, which of the following statements is correct? Select one: a. The Carters' nominal income and real income have both risen. b. The Carters' nominal income and real income have both fallen. c. The Caters' nominal income has risen and their real income has fallen. d. The Carters' nominal income has fallen and their real income has risen.

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