20
QuizMultiple Choice

Long-Term Budgets — Quiz

Question 20 • Advanced Financial Algebra

Which factor is most likely to decrease a person's budget over time?

Answer
A
rising inflation
B
lower interest rate on loans
C
decrease in income taxes
D
salary increase

Explanation

Rising inflation increases the prices of goods and services, so the same income buys less over time. This reduces a person’s purchasing power and can leave less money available in their budget. The correct choice is rising inflation; a salary increase or lower taxes would generally increase available funds.

AI-written and checked against the verified answer.