Question: Assume you save $ 1 , 0 0 0 in a bank account that pays 8 percent interest per year and the inflation rate is

Assume you save $1,000 in a bank account that pays 8 percent interest per year and the inflation rate is 3 percent. At the end of the year you have earned
q,
a nominal return of $50.
a real return $50.
a negative real retum.
a real return of $80.
Assume you save $ 1 , 0 0 0 in a bank account

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