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Suppose that a banks savings account offers a positive market interest rate, but the inflation-free interest rate on it is negative. Would you be better
Suppose that a banks savings account offers a positive market interest rate, but the inflation-free interest rate on it is negative. Would you be better off putting your money in this savings account or doing nothing with it?
Suppose that the consumer price index (CPI) is projected to increase a lot. Francis, a farmer, takes this to imply that his farms financial performance will improve, since he will be able to sell his soybeans for higher prices. Provide two distinct reasons whyFranciss reasoning is not necessarily valid.
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