Answer to Question #66548 in Macroeconomics for oreoluwa o

Question

Your bank paid​ 3% interest on​ $1,000 deposited in your savings account. The inflation rate during the year was​ 4%.
​A.) Calculate the real interest rate that you earned on the deposit. ​(Enter a numeric value for your answer including the correct sign.​)

66​%
​B.) Based on your calculations​ above, you​ ______ in this case.
A.
gained
B.
lost
C.
neither gained nor lost

Answer 1

A)
-  bank paid​
- inflation rate
 The real interest rate is -14,28%

B) Based on your calculations​ above, you​ lost in this case.