Over the Past Year You Earned a Nominal Rate of Interest

question 56

Multiple Choice

Over the past year you earned a nominal rate of interest of 12.5 percent on your money.The inflation rate was 2.6 percent over the same period.The exact actual growth rate of your purchasing power was

• A)9.15%.
• B)9.90%.
• C)9.65%.
• D)10.52%.
• E)none of the above.