Over the Past Year, You Earned a Nominal Rate of Interest

question 78

Multiple Choice

Over the past year, you earned a nominal rate of interest of 14% on your money. The inflation rate was 2% over the same period. The exact actual growth rate of your purchasing power was

• A) 11.76%.
• B) 16.00%.
• C) 15.02%.
• D) 14.32%.

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Definitions:

Meatless Fridays

A practice primarily observed within some Christian denominations where adherents abstain from consuming meat on Fridays, particularly during Lent, as a form of penance or spiritual discipline.

Demand

The desire of buyers or consumers for a particular good or service, backed by the ability and willingness to pay for it.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level.

Demand

The level of demand for goods or services that individuals are ready and capable of purchasing at multiple price points during a set period.