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How much did it increase or decrease

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You lent $740 to a friend for one year at a nominal rate of interest of 3 percent. Inflation during that year was 2 percent. Did you experience an increase or decrease in the purchasing power of your money? How much did it increase or decrease? (Round answer to 2 decimal places, e.g. 52.75%.)

The purchasing power  

a) increased or decreased?

b) by what %.

Reference no: EM132238963

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