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

question 64

Multiple Choice

Suppose that over the past year,the real interest rate was 6 percent and the inflation rate was -2 percent.It follows that

• A)the dollar value of savings increased at 4 percent,and the purchasing power of savings increased at 6 percent.
• B)the dollar value of savings increased at 4 percent,and the purchasing power of savings increased at 8 percent.
• C)the dollar value of savings increased at 8 percent,and the purchasing power of savings increased at 4 percent.
• D)the dollar value of savings increased at 8 percent,and the purchasing power of savings increased at 6 percent.

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Definitions:

Myriapods

A group of arthropods that includes centipedes and millipedes, characterized by having numerous legs.

Deuterostomes

A classification of animals characterized by the development of the anus from the first opening in the embryo, with the mouth forming later.

Echinoderms

A phylum of marine animals known for their radial symmetry and include starfish, sea urchins, and sea cucumbers.

Water-Vascular System

A unique hydraulic system used by echinoderms (such as starfish and sea urchins) for locomotion, feeding, and gas exchange.