If the Value of Your Savings Is Increasing Over Time

question 110

Multiple Choice

If the value of your savings is increasing over time, it must be true that the inflation rate:

• A) is higher than the nominal interest rate.
• B) is lower than the nominal interest rate.
• C) is equal to the nominal interest rate.
• D) is zero.

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Definitions:

Per Student

Refers to the allocation of educational resources or benefits measured on an individual student basis.

Federal Poverty Level

A measure used to determine eligibility for certain federal programs and benefits, based on income.

Premium Tax Credit

A refundable tax credit designed to help eligible individuals and families with low or moderate income afford health insurance purchased through the Health Insurance Marketplace.

Household Income

The total gross income before taxes of all household members over a certain age, typically used for financial assessments.