Answer:
If inflation rate is positive, purchasing power of money decreases thus the rate of returns on investment decreases.
Step-by-step explanation:
When the prices of goods and services are averagely increasing we say that inflation is positive.Purchasing power is high when a currency value is able to purchase more goods and services as per unit of money can buy.when inflation is positive, the amounts of goods and services that can be purchased is reduced.
Answer:
If the inflation rate is positive, purchasing power (it is not is increased). This situation is reflected in the REAL rate of return on an investment, which will be ( is not equal to) the rate of return NOMINAL.
Step-by-step explanation:
Capital words are right. Ones in ( ) is wrong and to help you get rid of options.
