Suppose a family's income increases by 5 percent at the same time that inflation is 6 percent. then the family's living standard
a. will increase by 5 percent.
b. will increase by 1 percent.
c. will decrease.
d. will not change.

When the currency supply is inflated it basically makes the currency worth less thus poeple's money loses adquisition power, if the family's income goes to 5% but inflation goes to 6% then logically inflation is making the family's currency value drop 1 point, meaning the family will adquire less things due goods & services become more expensive, therefore (c), their living standard unfortunately will decrease.