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Joyce's investments earn 5% nominal annual return right now while the inflation rate is at 1%. If inflation increases to 5%, it is likely that the nominal rate will _____. A. stay the same B. decrease
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Joyce's investments earn 5% nominal annual return right now while the inflation rate is at 1%. If inflation increases to 5%, it is likely that the nominal rate will _____.

A.


stay the same


B.


decrease


C.


increase


D.


approach the real rate

User Kluddizz
by
8.4k points

2 Answers

5 votes
B increase because it says that he went 4 points more
User Sunil Purushothaman
by
8.1k points
2 votes

Answer:

i think its B

Explanation:

User Sara Vaseei
by
7.5k points
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