The Real Interest Rate Tells You

question 102

Multiple Choice

The real interest rate tells you

• A)how fast the number of dollars in your bank account rises over time.
• B)how fast the purchasing power of your bank account rises over time.
• C)the number of dollars in your bank account today.
• D)the purchasing power of your bank account today.

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Definitions:

Electromagnetic Radiation

Energy that spreads out as it travels through space, exhibited in forms such as radio waves, light, and x-rays.

Distends

Becomes inflated, stretches out.

Inflated

Increased or exaggerated beyond reasonable or normal limits, often referring to prices, ego, or statistics.

Radiograph

A record produced on a photographic plate, film, or paper by the action of X-ray or radium.