Suppose That Over the Past Year,the Nominal Interest Rate Was

question 58

Multiple Choice

Suppose that over the past year,the nominal interest rate was 5 percent,the CPI was 150.3 at the end of the year,and the CPI was 144.2 at the beginning of the year.It follows that

• A)the dollar value of savings increased at 5 percent,and the purchasing power of savings increased at 0.8 percent.
• B)the dollar value of savings increased at 5 percent,and the purchasing power of savings increased at 9.2 percent.
• C)the dollar value of savings increased at 0.8 percent,and the purchasing power of savings increased at 5 percent.
• D)the dollar value of savings increased at 9.2 percent,and the purchasing power of savings increased at 5 percent.