A University Student Last Year Borrowed at a 10% Interest

question 5

Multiple Choice

A university student last year borrowed at a 10% interest rate when inflation was 5%. This year she borrows at 15% and inflation is 10%. Compared with last year, the student is:

• A) in a higher tax bracket.
• B) better off.
• C) worse off.
• D) the same.

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Definitions:

Asset Management

The systematic process of operating, maintaining, and upgrading assets cost-effectively, often referring to financial investments.

Resources Efficiency

The strategic use of materials and energy to maximize productivity while minimizing waste and environmental impact.

Minimum Cost

The lowest possible expenditure required to achieve a specific outcome or maintain a certain standard of quality or efficiency.

Market Economy

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.