With No Inflation and a Nominal Interest Rate (I)of

question 68

Multiple Choice

With no inflation and a nominal interest rate (i) of .03,a person can trade off one unit of current consumption for ________ units of future consumption.

• A)0.97
• B)1.03
• C)0.03
• D)-0.03

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Definitions:

Promotional Positioning

The use of promotion to create and maintain an image of a product in buyers’ minds.

Calories

Units of energy used to measure the energy content in food, necessary for human life and activity.