If a Family's Income Increases by 5% at the Same

Multiple Choice

If a family's income increases by 5% at the same time that inflation is 3.5%, then the:

A) Family will need to spend more in order to maintain its standard of living
B) Family will need to spend less in order to maintain its standard of living
C) Family's standard of living is not affected by inflation
D) Family will need to spend the same amount in order to maintain its standard of living