Assume Your Uncle Recorded His Salary History During a 40-Year

Multiple Choice

Assume your uncle recorded his salary history during a 40-year career and found that it had increased ten-fold.If inflation averaged 5 percent annually during the period, how would you describe his purchasing power, on average?

A) His purchasing power remained on par with inflation
B) He "beat" inflation by nearly 1 percent annually
C) He "beat" inflation by slightly over 2 percent annually
D) He "beat" inflation by 5 percent annually