Practice Quiz

CLEP Economics Exam Prep

Category - Economics

Start a Study Session Sign up for Question of the Day
Jennifer receives a 2 percent increase in wages this year. The inflation rate is 4 percent. Which of the following is most likely to happen to Jennifer's financial situation?
  1. She will have more income to spend and greater purchasing power.
  2. She will have more income to spend and less purchasing power.
  3. Her cost of living and her purchasing power will decrease.
  4. Her cost of living and her purchasing power will increase.
Explanation
Answer: B - She will have more income to spend and less purchasing power.
Previous Next
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz