Suppose That You Lend Me $100 for a Year,and That

question 42

Multiple Choice

Suppose that you lend me $100 for a year,and that I agree to pay you $110 at the end of one year (principal plus interest) .Over the intervening year,however,the average price of goods in the economy rises by 3%.The real rate of return that you will earn on your loan to me is therefore equal to

• A)3%.
• B)7%.
• C)10%.
• D)13%.
• E)greater than 13%.

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Definitions:

Genetic Signals

Biological indicators or messages encoded within an organism's DNA that influence traits or behaviors.

Gestation Period

The duration of time between fertilization and birth in which an embryo or fetus develops inside the mother's womb.

Introitus

The opening of the vagina.

Bartholin's Glands

Two small glands located near the vaginal opening in females that secrete fluid to lubricate the vagina.