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Tashonna Puts Money in a Savings Account at Her Bank

Question 16

Multiple Choice

Tashonna puts money in a savings account at her bank, earning 4.5 percent. One year later, she takes her money out and notes that while her money was earning interest, prices rose 2.5 percent. How has the amount of goods Tashonna can buy changed one year later?


A) Tashonna can buy 7 percent more goods.
B) Tashonna can buy 7 percent less goods.
C) Tashonna can buy 2 percent more goods.
D) Tashonna can buy 2 percent less goods.

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