Last Year,you Earned a Rate of Return of 6

question 72

Multiple Choice

Last year,you earned a rate of return of 6.42 percent on your bond investments.During that time,the inflation rate was 1.6 percent.What was your real rate of return?

• A)4.69 percent
• B)4.80 percent
• C)4.83 percent
• D)4.74 percent
• E)4.71 percent

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Definitions:

Indifference Curves

Graphical representations in economics, illustrating different combinations of goods or services among which a consumer is indifferent.

Ordinary Goods

Goods for which demand increases as consumer income increases and decreases as consumer income decreases, opposite to inferior goods.

Consumer Equilibrium

A scenario in which a consumer has distributed their income to achieve the greatest satisfaction, considering the prices of goods and services.

Budget Constraint

A representation of all the combinations of goods and services that a consumer can afford to purchase at given prices within their income level.