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

question 64

Multiple Choice

Suppose that over the past year,the real interest rate was 6 percent and the inflation rate was -2 percent.It follows that

• A)the dollar value of savings increased at 4 percent,and the purchasing power of savings increased at 6 percent.
• B)the dollar value of savings increased at 4 percent,and the purchasing power of savings increased at 8 percent.
• C)the dollar value of savings increased at 8 percent,and the purchasing power of savings increased at 4 percent.
• D)the dollar value of savings increased at 8 percent,and the purchasing power of savings increased at 6 percent.

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Definitions:

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, transforming economies through the development of factories, railroads, and machinery, and shifting societies from agricultural to industrial.

Indian Reservations

Designated areas of land managed by Native American tribes under the U.S. Bureau of Indian Affairs, intended to maintain and preserve their cultures and ways of life.

Population Growth

The increase in the number of individuals in a population, often measured by birth rate minus death rate plus net migration.