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George bought an investment one year ago and just calculated his return on investment. He found that his purchasing power has increased by 10% as

George bought an investment one year ago and just calculated his return on investment. He found that his purchasing power has increased by 10% as a result of his investment. If the inflation over the period was 3%, his _______________.

A. nominal return on investment is more than 10%

B. nominal return on investment is 7%

C. real return on investment is less than 10%

D. real return on investment is equal to 7%

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