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

question 107

Multiple Choice

Assume your uncle recorded his salary history during a 40-year career and found that it had increased 10-fold.If inflation averaged 4% 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% annually.
• C) He "beat" inflation by slightly below 2% annually.
• D) He "beat" inflation by 5% annually.

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