Author Question: Caroline has saved 100,000 for her retirement. She earned 4 percent interest on that money during ... (Read 60 times)

JGIBBSON · **on:** Jun 29, 2018

Caroline has saved 100,000 for her retirement. She earned 4 percent interest on that money during the year 2013. If the inflation rate was 1 percent in 2013, what was Caroline's real interest rate?

A) 4,000 B) 5 percent C) 1 percent D) 4 percent E) 3 percent

Question 2

Which aggregate expenditure categories are influenced by the level of real GDP?

A) investment and government expenditures on goods and services
B) consumption and government expenditures on goods and services
C) consumption and investment
D) imports and exports
E) consumption and imports