In Which Case Below Does a Person's Purchasing Power from Saving

question 114

Multiple Choice

In which case below does a person's purchasing power from saving increase the most?

• A)the nominal interest rate = 10% and inflation = 8%
• B)the nominal interest rate = 9% and inflation = 6%
• C)the nominal interest rate = 8% and inflation = 4%
• D)the nominal interest rate = 7% and inflation = 2%

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Definitions:

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