Sophia deposits $1,000 in a savings account that pays an annual interest rate of 4 percent.Over the course of a year,the inflation rate is 1 percent.At the end of the year,Sophia has
A) $30 more in her account,and her purchasing power has increased by $10.
B) $30 more in her account,and her purchasing power has increased by $40.
C) $40 more in her account,and her purchasing power has increased by $30.
D) $50 more in her account and her purchasing power has increased by $40.
Correct Answer:
Verified
Q92: Suppose that over the past year,the real
Q106: In the United States in the late
Q117: In the United States,nominal interest rates were
A)high
Q119: In the United States,real interest rates were
A)high
Q205: Which of the following is correct?
A)Nominal and
Q331: The consumer price index was 225 in
Q342: Ms.Take borrowed $1,000 from her bank for
Q344: Which of the following is not correct?
A)
Q345: Ralph puts money in the bank and
Q351: Maxine deposits $100 in a bank account
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents