Multiple Choice
Which of the following is not correct?
A) If the inflation rate exceeds the nominal interest rate,then the purchasing power of an interest-earning deposit falls over time.
B) If there is deflation,then the purchasing power of an interest-earning deposit rises by more than the nominal interest rate over time.
C) The higher the rate of inflation,the smaller the increase in the purchasing power of an interest-earning deposit.
D) The purchasing power of an interest-earning deposit can increase or decrease over time,but it cannot stay the same.
Correct Answer:

Verified
Correct Answer:
Verified
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