If the real interest rate is 9 percent and the expected inflation rate is 2 percent,what would a person expect to have after a year?
A) 7 percent more dollars,which will purchase 7 percent more goods
B) 7 percent more dollars,which will purchase 9 percent more goods
C) 11 percent more dollars,which will purchase 7 percent more goods
D) 11 percent more dollars,which will purchase 9 percent more goods
Correct Answer:
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