If You Require a Real Growth in the Purchasing Power

question 70

Multiple Choice

If you require a real growth in the purchasing power of your investment of 8%,and you expect the rate of inflation over the next year to be 3%,what is the lowest nominal return that you would be satisfied with?

• A) 3.00%
• B) 8.00%
• C) 11.00%
• D) 11.24%

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Definitions:

Crowded

Describes a condition or area characterized by being densely filled with people or objects, often leading to discomfort or restricted movement.

Dark Sky Preserve

An area, usually a park or conservation area, designated to be kept free of artificial light pollution to promote astronomy and protect nocturnal wildlife.

Low-Density Development

A type of urban planning that spreads out buildings and population, often resulting in more green space per capita but requiring more land.

Industrialization

The process of developing industries in a country or region on a wide scale.