Suppose That Last Year You Borrowed $100 at 5 Percent

question 72

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.
• E) make you an inflation loser because of bracket creep.

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Definitions:

Microsociological Research

A domain of sociology focused on studying social interactions and behaviors at the individual or small group level.

Symbolic Interaction

Symbolic interaction is a perspective in sociology that focuses on the ways individuals interpret and give meaning to social symbols, interactions, and experiences.

Macrosociological

Refers to the study of large-scale social structures and processes, focusing on how society shapes and is shaped by these structures.

W. I. Thomas

An American sociologist best known for his work in the development of social theory and for the Thomas Theorem, which states that situations defined as real are real in their consequences.