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Suppose you postpone consumption so that by investing at 8% you will have an extra $800 to spend in one year. Suppose inflation is 6%

Suppose you postpone consumption so that by investing at 8% you will have an extra $800 to spend in one year. Suppose inflation is 6% during this time. What is the real increase in your purchasing power?

a. $200 b. $600

c. $400 d. $800

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