Wally Has Been Saving Every Penny to Buy Himself a Fishing

Multiple Choice

Wally has been saving every penny to buy himself a fishing boat when he turns eighteen.First, he selected the model boat he wanted, and then, over the past five years, has managed to save $10,000, price of the boat, from working at summer and after-school jobs.When Wally arrives at the boat dealership on his eighteenth birthday, he is disappointed to learn that the same boat now costs $11,200.The most likely reason for the price increase is:

A) he cost of boat building materials has gone down
B) Increase in purchase power of cash
C) deflation
D) a combination of cost increases and inflation