Multiple Choice
Suppose you put $100 dollars in the bank on January 1, 2013. If the annual nominal interest rate is 5 percent and the inflation rate is 2 percent, you will be able to buy ________ worth of goods on January 1, 2014.
A) $93
B) $107
C) $103
D) $105
E) $99
Correct Answer:
Verified
Correct Answer:
Verified
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