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You Purchase a Certificate of Deposit That Earns an Advertised

Question 134

Multiple Choice

You purchase a certificate of deposit that earns an advertised rate of 1.75% interest per year. What is your real rate of return if the actual inflation rate is 1.9%?


A) 3.65%
B) -0.15%
C) 1.75%
D) 0.15%

Correct Answer:

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