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lyudmila [28]
3 years ago
5

Shawn puts money into an account. One year later he sees that he has 6 percent more dollars and that his money will buy 5 percen

t more goods. a. The nominal interest rate was 11 percent and the inflation rate was 5 percent. b. The nominal interest rate was 6 percent and the inflation rate was 5 percent. c. The nominal interest rate was 5 percent and the inflation rate was -1 percent. d. The nominal interest rate was 6 percent and the inflation rate was 1 percent.
Business
1 answer:
Paladinen [302]3 years ago
7 0

Answer:

d. The nominal interest rate was 6 percent and the inflation rate was 1 percent.

Explanation:

Nominal interest rate = real interest rate + inflation rate

Real interest rate is nominal interest rate less inflation rate. The real interest rate represents the real purchasing power of interest paid.

If the interest rate buys 5 percent more goods ,it means that the purchasing power and the real interest rate is 5 percent.

The nominal interest rate is 6 %

Inflation rate = nominal interest rate - real interest rate

= 6% - 5% = 1%

I hope my answer helps you.

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