The following question is taken from the revision booklets for CT7, booklet 6. "Which of the following statements about real variables in the economy is FALSE? Real interest rates are negative if the rate of inflation exceeds the nominal rate of interest If all else is constant, a rise in money wages is also a rise in real wages. An increase in real income will lead to a reduced demand for real money balances. None of the above. The answer is listed as C, but surely this would mean that D is also false and hence there are two answers to the question (the same being true if either A or B were false). Of course this works the other way around, if D is the answer then one of A, B or C must also be the answer. On the other hand, all statements could be true and there is no correct answer to the question. Someone please correct me if I'm wrong - but C cannot be the single answer to the question!?
Well, "none of the above" isn't really a statement about real variables in the economy! I imagine they are referring to the first three statements.
