Suppose Prices Increase by 4% Per Year

question 88

Multiple Choice

Suppose prices increase by 4% per year. What nominal percentage return on your savings account would you require to get a 1% real return?

• A) 7%
• B) 0%
• C) 5%
• D) 2%

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Definitions:

Column Border

A feature in spreadsheet and word processing applications that allows users to define the boundary lines of columns.

Column

A vertical division in a table or spreadsheet, representing a specific category of data.

Insert Rows

an action in spreadsheet and table editing that adds new rows to accommodate additional data.

Table

A set of data arranged in rows and columns that is used to organize and display information systematically.