Assume you save 1,000 in a bank account that pays 8 percent ...

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Assume you save 1,000 in a bank account that pays 8 percent interest per year and the inflation rate is 3 percent. At the end of the year you have earned
 
  A) a nominal return of 50.
  B) a negative real return.
  C) a real return of 50.
  D) a real return of 80.

Question 2

Using the data in the above table, the unemployment rate is
 
  A) 4.0 percent.
  B) 4.16 percent.
  C) 5.55 percent.
  D) 28.0 percent.

[Kdiggy]

Answer to Question 1

C

Answer to Question 2

A