You Put Money into an Account

Multiple Choice

You put money into an account. One year later you see that you have 5 percent more dollars and that your money will buy 6 percent more goods.

A) The nominal interest rate was 11 percent and the inflation rate was 5 percent.
B) The nominal interest rate was 6 percent and the inflation rate was 5 percent.
C) The nominal interest rate was 5 percent and the inflation rate was -1 percent.
D) None of the above is correct.