Your Savings Account Yielded 1

question 12

Multiple Choice

Your savings account yielded 1.5% last year. The inflation rate was 2%. What real return did you earn on this account? Round your answer to the nearest tenth of a percent.

• A)-0.5%
• B)+1.0%
• C)-1.0%
• D)+0.1%

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Definitions:

Marginal Benefit

The incremental benefit or satisfaction obtained from consuming one additional unit of a particular good or service.

Marginal Cost

The additional cost incurred to produce one more unit of a good or service, important for decision-making in production and pricing strategies.

Avid Runner

An individual who is highly passionate and consistent about running as a form of exercise or sport.

Opportunity Costs

The value of the best alternative forgone when a different investment or decision is made.