Suppose you put money into a savings account. One year later you have 5 percent more dollars and your money will buy 6 percent more goods. Which of the following must be true?
A. The nominal interest rate was 11 percent and the inflation rate was 5 percent.
B. The nominal interest rate was 6 percent and the inflation, rate was 5 percent.
C. The nominal interest rate was 5 percent and the inflation rate was -1 percent.
D. None of the above is correct.



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