If you want to purchase a new sports car in four years for $75,000, how much would you need to have in your bank account now, so after four years you will have $75,000 to buy the car? Assume your bank pays 6 percent interest

The difference between the nominal interest rate and the real interest rate is:

A. the inflation rate. B. taxes. C. seigniorage. D. hyperinflation.

The purchase of a new automobile is included in

A) investment expenditures. B) consumption expenditures on durable goods. C) consumption expenditures on nondurable goods. D) consumption expenditures on services.