If the interest rate is less than the inflation rate, a rational person will never save money.

Name: If the interest rate is less than the inflation rate, a rational person will never save money.
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Question

Quizplus · Accepted Answer

While a lower interest rate compared to the inflation rate reduces the real value of savings over time, individuals might still save money for various reasons such as security, future purchases, or lack of better investment options.

If the Interest Rate Is Less Than the Inflation Rate