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Suppose you postpone consumption so that by investing at 5% you will have an extra $500 to spend in one year. Suppose that inflation is 2% during this time. What is the approximate real increase in your
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22 votes
22 votes
Suppose you postpone consumption so that by investing at 5% you will have an extra $500 to spend in one year. Suppose that inflation is 2% during this time. What is the approximate real increase in your purchasing power

User John Wiseman
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1 Answer

22 votes
22 votes

Answer: $300

Explanation: 3/5 x $500= $300

User The Grand User
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