Asked by Meredith

The annual nominal rate of interest on a bank certificate of deposit is 12%. What would be the effect of an inflation rate of 13% and why?
Answered by Ms. Sue
Why are you taking such an out-of-date class? Most CDs are paying less than 1% per year.

Answered by Meredith
idk. it's just a homework question to see if we understand the subject i guess.
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