You Put Money into an Account

question 209

Multiple Choice

You put money into an account. One year later you see that you have 6 percent more dollars and that your money will buy 2 percent more goods.

• A) The nominal interest rate was 8 percent and the inflation rate was 6 percent.
• B) The nominal interest rate was 6 percent and the inflation rate was 4 percent.
• C) The nominal interest rate was 4 percent and the inflation rate was 2 percent.
• D) None of the above is correct.

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Definitions:

Inventories

Stocks of goods and materials a business holds for the purpose of resale or production.

Gross Domestic Product

Gross Domestic Product (GDP) is the total market value of all final goods and services produced within a country's borders in a given period, serving as a broad measure of a nation's overall economic activity.

Marketable

Referring to assets or securities that are easily sold or converted into cash without significant loss in value.

Professionally Installed

Refers to equipment or systems setup and configured by experts or certified technicians, ensuring optimal performance and compliance with standards.