Julia invested $3,000 at an annual interest rate of 5 percent. From last year to this year, there has been a 4 percent inflation rate. After a year, the purchasing power of her investment _____.
(A) Is 4 percent
(B) Is 5 percent
(C) Rose by 1 percent
(D) Fell by 1 percent
Ans: (C) Rose by 1 percent
You might also like to view...
Market supply is found by
A) horizontally summing each individual producer's average total cost curve. B) vertically summing the relevant part of each individual producer's marginal cost curve. C) horizontally summing the relevant part of each individual producer's marginal cost curve. D) vertically summing each individual producer's average total cost curve.
If the marginal propensity to save is 0.4, the multiplier is 2.5
Indicate whether the statement is true or false
An increase in the real interest rate outside of the United States will cause the dollar to ________ relative to other currencies and ________ net exports and real GDP
A) appreciate; increase B) appreciate; reduce C) depreciate; increase D) depreciate; reduce
Tariff rates on products imported into the United States:
a. were prohibited by the Constitution. b. have dropped substantially over the past 50 years. c. reached an all time high in 1996. d. have steadily increased since 1920. e. have never played a big part in U.S. trade policy.