Ashley puts money in a savings account at her bank earning 2 percent interest.One year later she takes her money out and notes that prices rose 3 percent.Ashley earned a
A) real interest rate of -1 percent due to inflation.
B) real interest rate of 1 percent due to inflation.
C) nominal interest rate of -1 percent due to inflation.
D) nominal interest rate of 1 percent due to inflation.
Correct Answer:
Verified
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