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What happens to the future value of money when the inflation rate exceeds the interest rate? A. Stays the same B. Decreases C. Increases D. Not enough information

What happens to the future value of money when the inflation rate exceeds the interest rate? A. Stays the same B. Decreases C. Increases D. Not enough information
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2 votes
What happens to the future value of money when the inflation rate exceeds the interest rate?

A. Stays the same
B. Decreases
C. Increases
D. Not enough information

User Federico Navarrete
by
7.7k points

1 Answer

7 votes
inflation means that the value of money decreases. If it decreases faster than the interest rate makes the amount of money raise, the value will be decreased - option B.
User Murwa
by
8.4k points
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