ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Tanika loaned her friend $5, 000 last year and was paid back $5, 020 at the end of this year. Tanika thought her friend was generous to add an extra $20 for interest. The inflation rate for the two years averaged 2 percent per year. With inflation, is Tanika financially better off, worse off, or the same?
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Better off
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Worse off
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The same
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None of the above
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Explanation:
There is 1 question to complete.