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Kara's annual income is $ 3 2 , 0 0 0 . She feels financially secure knowing she will receive a 2 percent raise each

Kara's annual income is $32,000. She feels financially secure knowing she will receive a 2 percent raise each year. The current inflation rate is 3 percent. Which statement best describes Kara's purchasing power going forward?
Kara's purchasing power depends on the inflation rate each year.
Kara's purchasing power will decrease 3 percent each year.
Kara's purchasing power will increase 2 percent each year.
Kara's purchasing power will remain the same each year.
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