Question
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
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 3 percent, and the value of savings measured in goods increased at 1 percent.
b. The dollar value of savings increased at 4 percent, and the value of savings measured in goods increased at 3 percent.
c. The dollar value of savings increased at 1 percent, and the value of savings measured in goods increased at 2 percent.
d. The dollar value of savings increased at 2 percent, and the value of savings measured in goods increased at 3 percent.
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