Suppose You Postpone Consumption So That by Investing at 5

question 66

Multiple Choice

Suppose you postpone consumption so that by investing at 5% you will have an extra $500 to spend in one year.Suppose that inflation is 2% during this time.What is the approximate real increase in your purchasing power?

• A)$800
• B)$500
• C)$300
• D)$200

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