Multiple Choice
When Dana Roberts started her job as a librarian two years ago, her annual salary was $40,000. Although she is very good at her job and is now earning 10% more than what she started with, she notices that new hires in the same field are being offered $43,000 as an annual salary this year. Which of the following statements is most likely to be true?
A) Dana is earning less than $43,000 this year.
B) Real income for librarians in this country has increased, on an average, by $3,000 during the last two years.
C) If inflation in the current year is very high, then it is possible that Dana was better off with $40,000 two years back than the new hires are with a salary of $43,000 today.
D) Adjusted for inflation in the current year, it is likely that Dana's income this year is lower than the income of the new hires.
Correct Answer:

Verified
Correct Answer:
Verified
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