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Greta Puts Money in a Savings Account at Her Bank

Question 111

Multiple Choice

Greta puts money in a savings account at her bank earning 6.5 percent. One year later she takes her money out and notes that while her money was earning interest, prices rose 3.5 percent. Which of the following does Greta now have?


A) 3.5 percent more money with which she can purchase 6.5 percent more goods
B) 6.5 percent more money with which she can purchase 3 percent more goods
C) 6.5 percent more money with which she can purchase 6.5 percent more goods
D) 10 percent more money with which she can purchase 3 percent more goods

Correct Answer:

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