Home / Assignment Help / If the inflation rate increases faster than their income, people will most likely: A. use a higher proportion of their incomes on basic needs B. spend a lower proportion of their incomes on basic needs C. get more goods and services for less money D. obtain less goods and services for less money

If the inflation rate increases faster than their income, people will most likely: A. use a higher proportion of their incomes on basic needs B. spend a lower proportion of their incomes on basic needs C. get more goods and services for less money D. obtain less goods and services for less money

Answer:

29.68%

Step-by-step explanation:

Allen’s monthly take-home pay is $3000

His monthly rent is $750

Now both his monthly take-home pay and his rent increase by $200

So, After increase Allen’s monthly take-home pay =$3000+$200= $3200

After increase His monthly rent = $750+200=$950

Now we are supposed to find what percentage of Allen’s take-home pay will be used to pay rent

So, percentage = frac{text{Rent after increase}}{text {Take- home pay after increase}} times 100

                          = frac{950}{3200}times 100  

                          = frac{950}{32}  

                          = 29.68%  

Hence 29.68% of Allen’s take-home pay will be used to pay rent.                          

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