Suppose a family's income increases by 5 percent at the same time that inflation is 6 percent.Then the family's living standard
A)will increase by 5 percent.
B)will not change.
C)will increase by 1 percent.
D)will decrease.

Question

Quizplus · Accepted Answer

The family's income increase of 5 percent is less than the inflation rate of 6 percent, meaning their purchasing power decreases, leading to a decrease in their living standard.

Suppose a Family's Income Increases by 5 Percent at the Same