Pick the 2 correct statements about inflation and growth.

Question

CHOOSE 2
Real growth is the measure of growth in buying power over a given period

Nominal growth tells you how much more valuable your money has become

If your salary increases by 4% and inflation is 5%, your purchasing power has increased by 1%

If the interest on your savings account is 5% and the inflation rate is 5%, the nominal growth on your savings is 10%

Your goal for long-term savings should be to match or beat inflation

Answer 1

The two correct statements about inflation and growth are:

1. Real growth is the measure of growth in buying power over a given period.
2. Your goal for long-term savings should be to match or beat inflation.