Answer:
The correct answer is E
Explanation:
Consumer behavior is the term which is defined as the study of how the individual consumers, organization or the groups use, dispose, select and buy the goods and the services in order to satisfy the wants and the desires.
In short, it refers to the consumers actions in the market place and the motives or the goals for those actions.
Therefore, the correct answer is the consumer behavior.
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I believe its B) the fourth and fifth
Answer:
Since the real rate of interest is negative, this means that the purchasing power of the savings have decreased over the year.
Explanation:
Data provided:
Interest rates = 7.85 %
The rate of inflation = 12.3 %
Now,
The Real interest rate is calculated as :
Real interest rate = Nominal interest rate - Inflation rate
on substituting the respective values, we get
Real interest rate = 7.85% - 12.3%
Or
The real interest rate = - 4.45%
Here,
Since the real rate of interest is negative, this means that the purchasing power of the savings have decreased over the year.
