Inflation plus

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The "Inflation-Plus" CD is the safer investment because it guarantees the purchasing power of the investment. Using the approximation that the real rate equals the nominal rate minus the inflation rate, the CD provides a real rate of 1.5% regardless of the inflation rate.

Reference no: EM13256816

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Inflation plus : The "Inflation-Plus" CD is the safer investment because it guarantees the purchasing power of the investment
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