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Under Which One of the Following Situations Would You Be

Question 17

Multiple Choice

Under which one of the following situations would you be better off?


A) You have $10,000 in your savings account paying 5 percent per year,and unanticipated inflation is 8 percent per year.
B) You have paid $500 for a $1,000 Canada savings bond that matures in 10 years,and unanticipated inflation is 10 percent per year.
C) You lend a friend $1,000 at 6 percent to be repaid in one year,and unanticipated inflation is 7 percent during the year.
D) You borrowed $2,500 at 7 percent to pay for this year's college expenses,and unanticipated inflation is 12 percent during the year.

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