You lend $5,000 to a friend for one year at a nominal interest rate of 10%. Inflation during that year is 5%. As a result, you will receive at the end of the year, but that money has a purchasing power of

A) $5,050; $5,025 B) $5,100; $5,050 C) $6,000; $5,500 D) $5,500; $5,250

Economics

An open market ________ by the Fed decreases interest rates and ________ investment

A) sale; decreases B) purchase; decreases C) purchase; increases D) sale; increases

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Economics

Oil found in Alaska is an example of

A) physical capital. B) land or natural resource. C) human capital. D) labor.

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Economics

You lend $5,000 to a friend for one year at a nominal interest rate of 10%. Inflation during that year is 5%. As a result, you will receive ________ at the end of the year, but that money has a purchasing power of ________