Suppose you have savings deposited in an account at an interest rate of 4 percent and your father tells you he earned 8 percent 10 years ago.Use the concept of the real interest rate to answer the following questions.
(A)Which of you got a better return? Is this all the information you need?
(B)Suppose the rate of inflation was 5 percent 10 years ago and it is now 3 percent.Does this information change your answer?
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