In 1975, interest rates were 7.85% and the rate of inflation was 12.3% in the United States What was the real interest rate in 1975? How would the purchasing power of your savings have changed over the year? What was the real interest rate in 1975?
Real rate of interest in 1975 was %. How would the purchasing power of your savings have changed over the year?
The purchasing power over that year did the following:
A. Increased by 4.45%
B. Declined by 3.96%
C. Increased by 3.95%
D. Declined by 4.45%