Question 11 Madelynne F. deposits $1,000 in a savings account that pays an annual interest rate of 4 percent. Over the course of a year, the inflation rate is 1 percent. At the end of the year, Madelynne F. has $30 more in her account, and her purchasing power has increased by $10. O $40 more in her account, and her purchasing power has increased by $40. O $40 more in her account, and her purchasing power has increased by $30. O $30 more in her account, and her purchasing power has increased by $40.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Question 11
Madelynne F. deposits $1,000 in a savings account that pays an annual interest rate of 4
percent. Over the course of a year, the inflation rate is 1 percent. At the end of the year,
Madelynne F. has
$30 more in her account, and her purchasing power has increased by $10.
$40 more in her account, and her purchasing power has increased by $40.
O $40 more in her account, and her purchasing power has increased by $30.
O $30 more in her account, and her purchasing power has increased by $40.
Transcribed Image Text:Question 11 Madelynne F. deposits $1,000 in a savings account that pays an annual interest rate of 4 percent. Over the course of a year, the inflation rate is 1 percent. At the end of the year, Madelynne F. has $30 more in her account, and her purchasing power has increased by $10. $40 more in her account, and her purchasing power has increased by $40. O $40 more in her account, and her purchasing power has increased by $30. O $30 more in her account, and her purchasing power has increased by $40.
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