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Question: if the real interest rate is 7 percent and the...

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If the real interest rate is 7 percent and the expected inflation rate is 2 percent, what would a person expect to have after a year?

Select one:

a. 2 percent less dollars, which will purchase 7 percent more goods

b. 10 percent more dollars, which will purchase 6 percent more goods.

c. 9 percent more dollars, which will purchase 7 percent more goods.

d. 7 percent more dollars, which will purchase 9 percent more goods.

e. 5 percent more dollars, which will purchase 9 percent more goods.

f. 5 percent more dollars, which will purchase 9 percent less goods

g. 9 percent more dollars, which will purchase 5 percent more goods.

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