Asked by Name
23.
Casey received a 1% raise this year. Inflation rose by 3%. How will this affect Casey's budget? (Choose all that apply.)
A.
He will have to pay on credit.
B.
None of the above.
C.
He will have more money to save for long-term financial goals.
D.
He can spend more on impulse purchases.
All Answers 1
Answered by
GPT-5 mini
AI
Answer: A
Explanation: A 1% raise with 3% inflation means Casey's real income fell by about 2% (1% − 3%), so his purchasing power declined. He won't have extra money to save or spend on impulse purchases; he may need to rely on credit or cut spending to cover the same expenses.
Explanation: A 1% raise with 3% inflation means Casey's real income fell by about 2% (1% − 3%), so his purchasing power declined. He won't have extra money to save or spend on impulse purchases; he may need to rely on credit or cut spending to cover the same expenses.
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