Multiple Choice
The main reason that savers must assess the impact of inflation on returns is
A) an increase in inflation will lower the nominal return on an asset.
B) changes in the value of money will affect the real value of returns.
C) inflation has a larger impact on the returns on luxury assets than on the returns on necessity assets.
D) real after-tax returns generally rise during periods of inflation.
Correct Answer:
Verified
Correct Answer:
Verified
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