Dean Borrows $400 from Tim

question 244

Multiple Choice

Dean borrows $400 from Tim. Tim wants to make a 10% real return on his money, so they both agree on a 10% interest rate paid next year. Dean and Tim did not anticipate any inflation, yet the actual inflation turned out to be 4% next year. In this case,

• A) Tim is better off.
• B) Dean will pay $56 a year from now on.
• C) Dean is better off.
• D) Tim will receive more than 10% of real rate of return a year from now.

---

Definitions:

Vertical Marketing Systems

A marketing system in which the main participants of distribution – producer, wholesaler, and retailer – work together as a unified group in order to meet consumer needs.

Types

Different categories or classifications into which things can be sorted based on common characteristics or attributes.

Major Types

Principal or most common categories or varieties within a broader concept.

Fastest Shopping Experience

A retail or e-commerce strategy aimed at minimizing the time customers spend from entering the store or website to completing their purchase.