If your bank pays you an interest rate of 6% and the inflation rate is 2% then your real rate of return is 8%.

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%

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