At an Inflation Rate of 9 Percent, the Purchasing Power

question 78

Multiple Choice

At an inflation rate of 9 percent, the purchasing power of R1 would be cut in half in 8.04 years.How long to the nearest year would it take the purchasing power of R1 to be cut in half if the inflation rate were only 4%?

• A) 12 years
• B) 15 years
• C) 18 years
• D) 20 years
• E) 23 years

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Definitions:

Public Policy

Comprises government actions and procedures intended to solve societal issues and promote the general welfare.

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A legal doctrine that stipulates that only parties in a contract have the right to sue or be sued on the contract terms.

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Bank's Sale

A sale conducted by a bank, usually involving assets owned by the bank or foreclosed properties.