Under Which One of the Following Situations Would You Be

question 233

Multiple Choice

Under which one of the following situations would you be better off?

• A) You have $10,000 in your savings account paying 5 percent per year and unanticipated inflation is 8 percent per year.
• B) You have paid $500 for a $1,000 U.S. savings bond that matures in 10 years and unanticipated inflation is 10 percent per year.
• C) You lend a friend $1,000 at 6 percent to be repaid in one year and unanticipated inflation is 7 percent during the year.
• D) You borrowed $2,500 at 7 percent to pay for this year's college expenses and unanticipated inflation is 12 percent during the year.

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Definitions:

Stasis

A period or state of inactivity or equilibrium.

Stasis

A condition in which there is no movement or developmental progress, often referring to blood flow, bodily fluids, or growth.

Infarction

The obstruction of the blood supply to an organ or region of tissue, causing local death of the tissue.

Stenotic

Relating to or affected by stenosis, a condition characterized by the abnormal narrowing of a body passage or opening.