156k views
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

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

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.