Suppose That Last Year You Borrowed $100 at 5 Percent

question 15

Multiple Choice

Suppose that last year you borrowed $100 at 5 percent interest to purchase a $100 pair of Nike cross-training shoes. This year you repaid the bank with interest. If the inflation rate was 10 percent last year, your purchase of the shoes would:

• A) make you an inflation winner as you saved $5 on the shoes.
• B) make you an inflation loser as you paid $5 more than you should have for the shoes.
• C) not be affected at all by the inflation rate.
• D) be taxed according to COLA adjustments.

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Definitions:

Racial Patterning

The organization or distribution of racial groups within a society, which can influence various socio-economic outcomes.

Health Status

An individual's overall condition of body and mind, considering the presence or absence of illness, injury, or impairment.

Racial Groups

Categories of humans based on physical characteristics, ancestry, historical affiliation, or shared culture.

Socioeconomic Factors

Aspects related to an individual's economic and social position that influence their health and access to resources.