To earn money on your investments, the rate of return must be higher than the

a. rate of deflation.

b. rate of inflation.

c. interest rate.

d. account fees.

Question

Social Studies

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5 May, 06:26

To earn money on your investments, the rate of return must be higher than the

a. rate of deflation.

b. rate of inflation.

c. interest rate.

d. account fees.

+4

Answers (1)

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Travis Hendrix · Answer 1

The correct answer is B. rate of inflation

If inflation rises, then it means that money loses value. If you make the same amount of money as before, but the rate rose, then you actually made less money because money lost some of its value.

To earn money on your investments, the rate of return must be higher than thea. rate of deflation.b. rate of inflation.c. interest rate.d. account fees.

To earn money on your investments, the rate of return must be higher than the

a. rate of deflation.

b. rate of inflation.

c. interest rate.

d. account fees.