Question
1. You are awarded a 10% pay raise. Inflation for the upcoming year is 4%. What is your real pay raise? Answer in percent and
1. You are awarded a 10% pay raise. Inflation for the upcoming year is 4%. What is your real pay raise? Answer in percent and round to two decimal places.
2. Historically, when does the level of interest rates tend to rise?
A. When the Federal Reserve buys bonds in the open market
B. When the economy is weakening
C. When the actual rate of inflation falls
D. During times of economic expansion
3. Investment A will return to you $2,028 in one year if you invest $1,750 today. Investment B will return to you $3,125 in one year. What is the most you will pay for Investment B? Round to the dollar.
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