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Suppose a Bank Will Pay You a 10% Interest Rate

Question 45

Multiple Choice

Suppose a bank will pay you a 10% interest rate on your deposits for 1 period. In this case you must sacrifice $10 of current consumption to finance

A) $9 of future consumption.
B) $10 of future consumption.
C) $11 of future consumption.
D) $1 of future consumption.

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