Carol experiences a 4% increase in income this year. She is:
A)perhaps better or worse off.
B)unambiguously no better or worse off.
C)unambiguously worse off.
D)unambiguously better off.

Question

Quizplus · Accepted Answer

Carol's real economic position after the income increase depends on factors like inflation and changes in the cost of living. If her expenses increase by more than 4%, she could be worse off, even with the higher income. Conversely, if her expenses increase less than 4% or not at all, she could be better off.

Carol Experiences a 4% Increase in Income This Year