A Worker Currently Earning $3000 Per Month Has Negotiated a 4

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 5%
B) if next year's inflation rate is 3%
C) if next year's inflation rate is 4%
D) if next year some prices increase by only 5%
E) if next year some prices increase by only 4%