Suppose that over the past year,the real interest rate was 6 percent and the inflation rate was 4 percent.It follows that
A) the dollar value of savings increased at 6 percent,and the purchasing power of savings increased at 2 percent.
B) the dollar value of savings increased at 6 percent,and the purchasing power of savings increased at 10 percent.
C) the dollar value of savings increased at 10 percent,and the purchasing power of savings increased at 2 percent.
D) the dollar value of savings increased at 10 percent,and the purchasing power of savings increased at 6 percent.
Correct Answer:
Verified
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