16. Over the past year you earned a nominal rate of interest of 10% on your money. The inflationate was 5% over the same period. The exact actual growth rate (real rate) of your purchasing power was A.15.5% B, 10.0% C. 50% D.4.8% E. 15.0% 17. Annual percentage rates (APRs) are computed using A simple interest. B. compound interest. C. either simple interest or compound interest. D. best estimates of expected real costs. E. None of the options 18. Other things equal, an increase in the government budget deficit A. drives the interest rate down. B. drives the interest rate up C. might not have any effect on interest rates. D. increases business prospects. 19. A fair game A. will not be undertaken by a risk-averse investor. B. is a risky investment with a zero risk premium. C. is a riskless investment. D will not be undertaken by a risk-averse investor and is a risky investment with a zero risk premium. E. will not be undertaken by a risk-averse investor and is a riskless investment