To earn money on your investments, the rate of return must be higher than the

rate of deflation.
rate of inflation.
interest rate.
account fees.
need help!!!

Question

To earn money on your investments, the rate of return must be higher than the
 	
	rate of deflation.
	rate of inflation.
	interest rate.
	account fees.
need help!!!

anonymous · Answer

Yes, to earn profit on your investments, the rate of return must be higher than the rate of inflation as to earn profit u not only need nominal increase u need an real increase for.eg. if the interest rate is 7% and the inflation rate is 8%.....u would only see an increase in ur nominal income but ur real income would fall...