You receive a five percent raise in your hourly wage. The inflation rate is four percent. Your purchasing power has

Name: You receive a five percent raise in your hourly wage. The inflation rate is four percent. Your purchasing power has
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Question

Quizplus · Accepted Answer

With a five percent raise in hourly wage, your income has increased. Even though the inflation rate is four percent, your purchasing power has still increased as your income growth outpaces the inflation rate. Therefore, choice A is the correct answer.

You Receive a Five Percent Raise in Your Hourly Wage