Inflation has been running at the annualized rate of 5%. You have just received a distribution from a mutual fund investment that has increased by 5%. Your purchasing power has:

Inflation has been running at the annualized rate of 5%. You have just received a distribution from a mutual fund investment that has increased by 5%. Your purchasing power has:



A. increased

B. decreased

C. stayed the same

D. become more variable



Answer: C. Stayed the same


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