The Real Interest Rate Tells You

question 147

Multiple Choice

The real interest rate tells you:

• A) the number of dollars in your bank account.
• B) the purchasing power of your bank account.
• C) how fast the purchasing power of your bank account increases over time.
• D) how fast the number of dollars in your bank account increases over time.

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Definitions:

Applied Voltage

The voltage that is supplied or exerted across a component or circuit.

R3

A designation for a resistor in an electrical circuit, the third identified resistor following an arbitrary or specified labeling convention.

Voltage Drop

The decrease in voltage along a conductor or component while it conducts electric current.

Applied Voltage

The electrical potential difference purposely introduced across a device or component, driving the current through it.