Ms. Lane borrowed $1,000 from her bank for one year at an interest rate of 10 percent. During that year, the price level went up by 15 percent. Which of the following statements is correct?
a. Ms. Lane will repay the bank fewer dollars than she initially borrowed.
b. Ms. Lane's repayment will give the bank less purchasing power than it originally loaned her.
c. Ms. Lane's repayment will give the bank greater purchasing power than it originally loaned her.
d. Ms. Lane's repayment will give the bank the same purchasing power that it originally loaned her.
b
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Which of the following are the rules for finding the point of allocative efficiency?
A) Produce on the PPF and then produce where the marginal benefit and marginal cost are as large as possible. B) Produce on the PPF and then produce where marginal benefit equals marginal cost. C) Produce on the PPF and then produce where marginal benefit and marginal cost are constant. D) Produce on the PPF and then produce where the marginal benefit exceeds marginal cost by as much as possible. E) Produce anywhere on the PPF.
Refer to Figure 10-6. A change in the price of popcorn only is shown in
A) Panel A. B) Panel B. C) Panel C. D) none of the above panels.