Put money into an account

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Reference no: EM13860950

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.

Reference no: EM13860950

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