Jake Loaned Elwood $6000 for One Year at a Nominal

question 94

Multiple Choice

Jake loaned Elwood $6000 for one year at a nominal interest rate of 12 percent. After Elwood repaid the loan in full, Jake complained that he could buy 5 percent fewer goods with the money Elwood gave him than he could before he loaned Elwood the $6000. What was the rate of inflation during the year?

• A) 2.5 percent
• B) 7.0 percent
• C) 8.0 percent
• D) 17.0 percent

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Definitions:

Trade Reporters

Journalists who specialize in reporting on industry-specific news, trends, and developments, catering to professionals within those sectors.

Industry Members

Individuals or companies that are part of a specific sector of the economy, sharing common interests, goals, and standards.

Non-traditional Media Representatives

Individuals or entities that represent forms of media outside the mainstream outlets, such as bloggers, social media influencers, and podcasters.

Product Launch Press Conferences

Events organized to officially introduce a new product to the market, often attended by the media, industry analysts, and other stakeholders.