Your boss is impressed with your work and gives you a 3% raise. If the inflation rate is 3%, you are _____.

Question

(1 point)
Responses

making more money in today’s dollars
making more money in today’s dollars

making about the same amount of money in today's dollars
making about the same amount of money in today's dollars

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

seeing no change in your paycheck

Answer 1

If your boss gives you a 3% raise and the inflation rate is also 3%, you are making about the same amount of money in today's dollars. The raise offsets the increase in the cost of living due to inflation, meaning your purchasing power remains unchanged.

So the answer is: making about the same amount of money in today's dollars.