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26 April, 12:20

What happens to the future value of money when the inflation rate exceeds the interest rate?

A. Stays the same

B. Decreases

C. Increases

D. Not enough information

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Answers (1)
  1. 26 April, 13:19
    0
    Inflation means that the value of money decreases. If it decreases faster than the interest rate makes the amount of money raise, the value will be decreased - option B.
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