Question
Suppose Adam, Ben, and Carl each received an inheritance of $200,000, and each used it immediately to purchase a house. Suppose that each of them
Suppose Adam, Ben, and Carl each received an inheritance of $200,000, and each used it immediately to purchase a house. Suppose that each of them sold the house a year after buying it. Economic conditions, however, were different in each case:
* When Adam owned the house, there was a 25% deflationthe prices of all goods and services decreased by approximately 25%. A year after Adam bought the house, he sold it for $154,000 (23% less than he paid).
* When Ben owned the house, there was no inflation or deflationprices had not changed significantly during that year. He sold the house for $198,000 (1% less than he paid for it).
* When Carl owned the house, there was a 25% inflationall prices increased by approximately 25%. A year after he bought the house, Carl sold it for $246,000 (23% more than he paid).
Which is the correct ranking of A(dam), B(en), and C(arl) in terms of the success of their house-transactions? ("XYZ" means X was the most successful and Z was the least successful)
Group of answer choices
BAC
ABC
CAB
CBA
BCA
ACB
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