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Suppose that you deposit $100 in a checking account that earns 5% interest. At the end of a year, which of the following is true?
Suppose that you deposit $100 in a checking account that earns 5% interest. At the end of a year, which of the following is true? Your purchasing power will have increased. Your purchasing power will have decreased. Your purchasing power may have increased or decreased. It depends on how much inflation there was over the year. Your purchasing power may have increased or decreased. It depends on whether you are a borrower or a lender
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