Suppose You Postpone Consumption and Invest at 9% When Inflation

question 95

Multiple Choice

Suppose you postpone consumption and invest at 9% when inflation is 3%.What is the approximate real rate of your reward for saving?

• A)3%
• B)5%
• C)6%
• D)7%

---

Definitions:

Growing Spurts

Growth spurts are periods of rapid physical growth and development typically observed in children and adolescents.

Zygote

A new cell formed from the union of a sperm and an ovum (egg cell); a fertilized egg.

Neonate

A newborn baby, especially during the first few weeks after birth.

Failure To Thrive

A medical condition often seen in infants and young children who exhibit inadequate growth or an inability to gain weight as expected for their age and gender.