Suppose Prices Increase by 3% Per Year

question 195

Multiple Choice

Suppose prices increase by 3% per year. What nominal percentage return on your savings account would you require to get a 3% real return?

• A) 3%
• B) 9%
• C) 8%
• D) 6%

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Definitions:

Confidence Interval

An assortment of values, drawn out from sample statistical examination, which is likely to encase the value of an unascertained population parameter.

Margin Error

A measure indicating the extent to which the data collected in a poll or survey may differ from the actual values within the entire population, showcasing the uncertainty associated with sampling.

Confidence Interval

A confidence interval is a range of values, derived from sample data, that is likely to contain the value of an unknown population parameter with a certain level of confidence.

Population Standard Deviation

A measure of the dispersion or variation of a set of values in a population, calculated as the square root of the variance.