Ask Question
17 May, 18:18

Imagine that the interest rate on your savings account is 1 percent a year and inflation is 2 percent a year. After one year, would the money in the account buy more than it does today, exactly the same or less than today?

+1
Answers (1)
  1. 17 May, 21:09
    0
    Less than today

    Explanation:

    The Correct answer for the given question is " less than today ".

    The reason for the answer is that the inflation is the rate at which the price of of good rises and here the inflation rate is more than the interest rate, thus, the purchasing capability will decrease. The the money in account will not increase as much as the price of the goods rises.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Imagine that the interest rate on your savings account is 1 percent a year and inflation is 2 percent a year. After one year, would the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers