You read that inflation for the foreseeable future expected to average 6% a year. you are trying to accumulate funds to start a business, and so you take your excess earnings and a) put them in a box in your closet instead of a savings account because the bank is only paying 2% which is half the inflation rate. b) put them in a box in your closet instead of a savings account because the bank is only paying 4% which is only 2/3 of the inflation rate. c) put them in a box in your closet instead of a savings account because the bank is only paying 6% which just equals the inflation rate. d) put the money in a savings account regardless of the interest, because any positive rate will reduce the negative impact of inflation on the accumulated savings.
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