Kristine has a savings account at a bank. If the nominal interest rate she earns exceeds the rate of inflation, then her purchasing power increases over time.

Name: Kristine has a savings account at a bank. If the nominal interest rate she earns exceeds the rate of inflation, then her purchasing power increases over time.
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Question

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When the nominal interest rate on Kristine's savings exceeds the rate of inflation, the real value of her savings increases, thus enhancing her purchasing power over time.

Kristine Has a Savings Account at a Bank