Multiple Choice
A worker currently earning $3000 per month has negotiated a 4% wage increase in anticipation of a 4% inflation rate in the next year.Under what scenario will the worker have a higher purchasing power?
A) if next year's inflation rate is 4%
B) if next year's inflation rate is 3%
C) if next year's inflation rate is 5%
D) if next year some prices increase by only 4%
E) if next year some prices increase by only 5%
Correct Answer:

Verified
Correct Answer:
Verified
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