2008 AM Que 1 vs EOC Reading 14 # 13 expected, increase, living, future

domani

2008 ques: After tax Salary is given & salaries & expenses are expected to increase at inflation rate
Ans: Inflation rate is considered while calculating nominal return
EOC # 13: After tax sal increase will offeset any future increase in living expenses
Ans: Doest not incorporate infaltion. Note says: need not consider inflation