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Rosa Deposits $100 in a Bank Account That Pays an Annual

Question 31

Multiple Choice

Rosa deposits $100 in a bank account that pays an annual interest rate of 20 percent.A year later,after Rosa has accumulated $20 in interest,she withdraws her $120.Rosa's purchasing power


A) did not change if the inflation rate was 20 percent.
B) decreased if the inflation rate was -5 percent.
C) increased if the inflation rate was 22 percent.
D) More than one of the above is correct.

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