In 1990, the average income for an American worker was $1,518 per month. In 2000, the average income for an American worker was $2,632 per month. During this time period, a basket of necessities (food, housing, etc.) increased from $657 per month in 1990 to $1,402 per month in 2000.
The real value of income
▼
increased
decreased
over that 10-year period.

Decreased

Step-by-step explanation:

-The rate of growth in food prices can be calculated using the compound interest formula as:

We use the calculated growth rate in food prices to find the potential future value of a 90's income:

#Compare this calculated value to the stated value:

Hence, the real value of income has decreased since it's less than it's future value over the 10-year period.

because they could drop even lower..