If the annual interest rate is 4 percent, a consumer who spends $100 today
a. will have to pay back $104 to the bank
b. would have to pay $104 next year to get the same goods
c. will receive $96 from the bank next year
d. would have to pay $96 next year to get the same goods
e. is giving up the ability to spend $104 on goods next year
E
Economics
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Last year's price level was 120 and since then there has been a 5 percent inflation. This year's price level is
A) 125. B) 126. C) 130. D) none of the above.
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