Concept:Nominal national income is the money value of final goods and services measured at current market prices.
It changes when either the quantity of output or the general price level changes.
Explanation:Nominal national income is calculated as:
Nominal Income=Current Market Price×Quantity of OutputWhen the rate of inflation is high, the average price level of goods and services rises.
Even if the physical quantity of output stays the same, the money value of national income increases.
An increase in the value of money means falling prices, which would lower the nominal value.
An increase in imports does not raise domestic output or the domestic price level directly.
Subsistence production is usually non-monetary and is not counted in nominal national income.
Thus, among the given options, high inflation raises nominal national income.
Answer:A. High rate of inflation