Jake Loaned Elwood 5,000 Dollars for One Year at a Nominal

question 12

Multiple Choice

Jake loaned Elwood 5,000 dollars for one year at a nominal interest rate of 10 percent.After Elwood repaid the loan in full,Jake complained that he could buy 4 percent fewer goods with the money Elwood gave him than he could before he loaned Elwood the money.From this,we can conclude that the rate of inflation during the year was

• A)-4 percent.
• B)4 percent.
• C)6 percent.
• D)14 percent.

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Definitions:

Granulation Tissue

Fresh connective tissue and tiny blood vessels that develop on a wound's surface as part of the recovery process.

Aging Skin

Changes that occur in the skin as part of the natural aging process, including wrinkles, dryness, and loss of skin elasticity.

Sweat Gland Activity

The physiological process involving the production and secretion of sweat by the glands in the skin.

Increased Permeability

A condition where biological membranes (such as blood vessels) allow more substances than normal to pass through them.