Suppose That Over the Past Year,the Real Interest Rate Was

question 57

Multiple Choice

Suppose that over the past year,the real interest rate was 3 percent and the inflation rate was 1 percent.It follows that

• A)the dollar value of savings increased at 2 percent,and the purchasing power of savings increased at 3 percent.
• B)the dollar value of savings increased at 2 percent,and the purchasing power of savings increased at 4 percent.
• C)the dollar value of savings increased at 4 percent,and the purchasing power of savings increased at 2 percent.
• D)the dollar value of savings increased at 4 percent,and the purchasing power of savings increased at 3 percent.

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Definitions:

Confidence Interval

A palette of values, from review of sample data, projected to include the value of an arcane population parameter.

Inedible Fish

Fish species that are not suitable for human consumption due to toxicity, conservation status, or poor taste.

Pollution

The contamination of the natural environment by harmful substances or energies, leading to adverse effects on living organisms and ecosystems.

Employment

The condition of working for pay, involving a formal agreement between an employer and an employee.