Answer to Question #66548 in Macroeconomics for oreoluwa o

Question #66548
Your bank paid​ 3% interest on​ $1,000 deposited in your savings account. The inflation rate during the year was​ 4%. ​A.) Calculate the real interest rate that you earned on the deposit. ​(Enter a numeric value for your answer including the correct sign.​) 66​% ​B.) Based on your calculations​ above, you​ ______ in this case. A. gained B. lost C. neither gained nor lost
1
Expert's answer
2017-04-05T10:55:06-0400
A)
-  bank paid​
- inflation rate
 The real interest rate is -14,28%

B) Based on your calculations​ above, you​ lost in this case.

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