Suppose That You Lend Me $100 for a Year, and That

question 71

Multiple Choice

Suppose that you lend me $100 for a year, and that I agree to pay you $110 at that time (principal plus interest) . Over the intervening year, however, the average price of goods in the economy falls by 4 percent. The real rate of return that you will earn on your loan to me is therefore equal to

• A) 4 percent.
• B) 6 percent.
• C) 10 percent.
• D) 14 percent.
• E) greater than 14 percent.

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Definitions:

NMR Data

Information obtained from nuclear magnetic resonance spectroscopy that provides insights into the molecular structure, dynamics, reaction state, and chemical environment of molecules.

Triplet

In chemistry and physics, refers to a quantum state with three possible orientations in a magnetic or spin system.

Broad Singlet

A term in nuclear magnetic resonance (NMR) spectroscopy describing a signal that appears as a single peak but with a broadened width due to various intermolecular interactions.

NMR Data

Information obtained from nuclear magnetic resonance spectroscopy, used to determine molecular structure and dynamics.