Multiple Choice
Suppose that the real interest rate was 3 percent and the inflation rate was 1 percent. What happened with the value of savings?
A) The dollar value of savings increased at 2 percent, and the value of savings measured in goods increased at 3 percent.
B) The dollar value of savings increased at 1 percent, and the value of savings measured in goods increased at 2 percent.
C) The dollar value of savings increased at 3 percent, and the value of savings measured in goods increased at 1 percent.
D) The dollar value of savings increased at 4 percent, and the value of savings measured in goods increased at 3 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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Q24: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7554/.jpg" alt=" -Refer to Table
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