A person whose paycheck grows at a slower rate than inflation would experience:
A) a decrease in money income and real income.
B) an increase in money income and real income.
C) a decrease in money income and an increase in real income.
D) an increase in money income and a decrease in real income.

Question

Quizplus · Accepted Answer

If a person's paycheck grows at a slower rate than inflation, their money income increases, but their real income, which is adjusted for inflation and reflects purchasing power, decreases.

A Person Whose Paycheck Grows at a Slower Rate Than