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Steven Puts Money into an Account

Question 167

Multiple Choice

Steven puts money into an account.One year later he sees that he has 6 percent more dollars and that his money will buy 2 percent more goods.


A) The nominal interest rate was 8 percent and the inflation rate was 6 percent.
B) The nominal interest rate was 6 percent and the inflation rate was 4 percent.
C) The nominal interest rate was 4 percent and the inflation rate was 2 percent.
D) None of the above is correct.

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