4
lesson pretestMultiple Choice

Pretest

Question 4 • Financial Math

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

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

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.

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