Suppose That Over the Past Year,the Real Interest Rate Was

question 57

Multiple Choice

Suppose that over the past year,the real interest rate was 3 percent and the inflation rate was 1 percent.It follows that

• A)the dollar value of savings increased at 2 percent,and the purchasing power of savings increased at 3 percent.
• B)the dollar value of savings increased at 2 percent,and the purchasing power of savings increased at 4 percent.
• C)the dollar value of savings increased at 4 percent,and the purchasing power of savings increased at 2 percent.
• D)the dollar value of savings increased at 4 percent,and the purchasing power of savings increased at 3 percent.

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Definitions:

Illegality

The state of being illegal or not permitted by law.

Clayton Act

A U.S. antitrust law enacted to promote competition and prevent monopolies by prohibiting certain types of discriminatory prices, services, and exclusive agreements among businesses.

Directors

Members of a company's board who are elected by shareholders to oversee the management and make significant business decisions.

Antitrust Amendments Act

Refers to legislative changes aimed at strengthening laws that regulate business practices to ensure fair competition and prevent monopolies.