Question

If you are given a 2% raise and the inflation rate is 3%, you are _____.
(1 point)
Responses

seeing no change in your paycheck
seeing no change in your paycheck

making the same amount as before in today's dollars
making the same amount as before in today's dollars

making less money in today's dollars
making less money in today's dollars

making more money in today's dollars

Answer 1

If you receive a 2% raise and the inflation rate is 3%, you are **making less money in today's dollars**.

This is because your raise does not keep up with inflation, meaning your purchasing power decreases.