Rob's income was $20,000 in 2005 and $22,000 in 2006.If inflation was 6% in 2006,then we can say that Rob's 2006 income
A)simply matched the inflation rate.
B)fell behind the inflation rate.
C)exceeded the inflation rate by 4%.
D)lagged the inflation rate by 2%.

Question

Quizplus · Accepted Answer

Rob's income increased from $20,000 to $22,000, which is a 10% increase (($22,000 - $20,000) / $20,000 * 100%). Since inflation was 6%, Rob's income increase exceeded the inflation rate by 4%.

Rob's Income Was $20,000 in 2005 and $22,000 in 2006