Answer:
Real rate of return= 4%
Explanation:
Giving the following information:
If your bank pays you an interest rate of 6% and the inflation rate is 2% then your real rate of return is 8%.
False, the inflation rate decreases the value of money over time. Therefore, the inflation rate rests value to the interest rate.
Real rate of return= 0.06 - 0.02= 0,04= 4%
