You Put Money into an Account

question 214

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.

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