Maxine deposits $100 in a bank account that pays an annual interest rate of 20%.A year later,after Maxine has accumulated $20 in interest,she withdraws her $120.Maxine's purchasing power
A) did not change if the inflation rate was 0%.
B) decreased if the inflation rate was -2%.
C) increased if the inflation rate was 5%.
D) More than one of the above is correct.
Correct Answer:
Verified
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