A person's annual income rises by 10 percent, while the rate of inflation is 2 percent. Which of the following statements most accurately portrays this information?

Name: A person's annual income rises by 10 percent, while the rate of inflation is 2 percent. Which of the following statements most accurately portrays this information?
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Question

Quizplus · Accepted Answer

The person's real income increased because their income rose by 10 percent, outpacing the inflation rate of 2 percent, which means their purchasing power has increased.

A Person's Annual Income Rises by 10 Percent, While the Rate