Suppose you put $100 in the bank on January 1, 2017. If the annual nominal interest rate is 5 percent and the inflation rate is 5 percent, you will be able to buy ________ worth of inflation-adjusted goods on January 1, 2018. Selected Answer: c. $105 Answers: a. $110 b. $90 c. $105 d. $95 e. $100

Suppose you put $100 in the bank on January 1, 2017. If the annual nominal interest rate is 5 percent and the inflation rate is 5 percent, you will be able to buy ________ worth of inflation-adjusted goods on January 1, 2018. Selected Answer: c. $105 Answers: a. $110 b. $90 c. $105 d. $95 e. $100

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter7: Inflation

Section: Chapter Questions

Problem 1SQP

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Question

Selected Answer:	c. $105
Answers:	a. $110
	b. $90
	c. $105
	d. $95
	e. $100

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