You Put Money into an Account

question 209

Multiple Choice

You put money into an account. One year later you see that you have 6 percent more dollars and that your money will buy 2 percent more goods.

• A) The nominal interest rate was 8 percent and the inflation rate was 6 percent.
• B) The nominal interest rate was 6 percent and the inflation rate was 4 percent.
• C) The nominal interest rate was 4 percent and the inflation rate was 2 percent.
• D) None of the above is correct.