James Took Out a Fixed-Interest-Rate Loan When the CPI Was

question 49

Multiple Choice

James took out a fixed-interest-rate loan when the CPI was 200. He expected the CPI to increase to 206 but it actually increased to 204. The real interest rate he paid is

• A)higher than he had expected, and the real value of the loan is higher than he had expected.
• B)higher than he had expected, and the real value of the loan is lower than he had expected.
• C)lower than he had expected, and the real value of the loan is higher than he had expected.
• D)lower then he had expected, and the real value of the loan is lower than he had expected.

Relate the pH of a solution to the concentrations of reactants and products in acid-base equilibria.

Understand the impact of reactant and product concentrations on the magnitude of the equilibrium constant.

Interpret how changes in concentration affect the position of equilibrium.

Determine the pH of a solution given the concentration of an acid or base and the equilibrium constant.

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to normal goods.

Money Income

The complete sum of financial gains accrued by a person or a family unit, encompassing earnings from employment, benefits, and returns on investments.

Demand Curve

A graph showing the relationship between the price of a product and the quantity of the product demanded at those prices.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, in contrast to a normal good where demand increases with an increase in consumers' income.