Expecting the inflation rate to be 3%,Tony decides to put his savings in a 12-month guaranteed income certificate yielding a fixed 6% interest rate.If the actual inflation rate is _____,it can be argued that _____ is/are worse off.
A) above 3%;the bank issuing the certificate
B) exactly 6%;both the bank and Tony
C) below 3%;Tony
D) below 3%;the bank issuing the certificate
Correct Answer:
Verified
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