answer:

Suppose that the nominal interest rate was 3 percent and the ination rate was 1 percent. What happened with the value of savings? The dollar value of savings increased at 3 percent, and the value of savings measured in goods increased at 2 percent. The dollar value of savings increased at 1 percent, and the value of savings measured in goods increased at 2 percent. The dollar value of savings increased at 4 percent, and the value of savings measured in goods increased at 3 percent. The dollar value of savings increased at 2 percent, and the value of savings measured in goods increased at 3 percent