Jake loaned Elwood 5,000 dollars for one year at a nominal interest rate of 10 percent.After Elwood repaid the loan in full,Jake complained that he could buy 4 percent fewer goods with the money Elwood gave him than he could before he loaned Elwood the money.From this,we can conclude that the rate of inflation during the year was
A) -4 percent.
B) 4 percent.
C) 6 percent.
D) 14 percent.
Correct Answer:
Verified
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