Raul Borrowed $1,000 from Marta for a Year and Agreed

question 116

Multiple Choice

Raul borrowed $1,000 from Marta for a year and agreed to repay her $1,050 at the end of the year.If the inflation rate was 3 percent,which of the following is the real rate of interest Marta received?

• A)10 percent
• B)5 percent
• C)3 percent
• D)2 percent
• E)−2 percent

---

Definitions:

Bargaining Structure

The framework within which labor negotiations and collective bargaining between employers and employees or their representatives take place.

Corporate Campaigns

Bringing public, financial, or political pressure on employers during union organization and contract negotiation.

Financial Pressure

Stress or strain on an organization's or individual's budget and resources, often leading to difficult financial decisions.

Public Pressure

The influence or persuasion exerted by society or a group of people on an individual or organization to perform a certain way.