The inflation level in 2014 was 1%, and Samantha Gibbons was just told her annual 2014 salary of $45,000 was not going to increase in 2015. How will this affect Samantha?
A) She will suffer from economic recession.
B) She will be able to purchase less.
C) She will suffer from inflation.
D) She will have reduced disposable income.
E) Her purchasing power will inflate.

Question

Quizplus · Accepted Answer

Samantha's salary remains the same while prices increase due to inflation, reducing her purchasing power.

The Inflation Level in 2014 Was 1%, and Samantha Gibbons