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George bought an investment one year ago and just calculated his return on investment. He found that his purchasing power has increased by 15% as a result of his investment. If the inflation over the period was 4%, his _______________.
Note: (1+R) = (1+r)(1+h), but you don’t need calculation here.
A. real return on investment is more than 15%
B. nominal return on investment is more than 15%
C. nominal return on investment is 11%
D. real return on investment is equal to 4%
Do you think that the Fed is currently concerned about stagflation in the economy? Why or why not? How did the U.S. stock market react to the last FOMC meeting? Did the S&P 500 Index go up or down?
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