Suppose Neha is a sports fan and buys only baseball caps. Neha deposits $3,000 in a bank account that pays an annual nominal interest rate of 5%. Assume this interest rate is fixed—that is, it won't change over time. At the time of her deposit, a baseball cap is priced at $10.00.   Fill in the chart:            0%                            5%                      8% Number of Caps Neha Can Purchase after One Year Choices: 291, 305, 315, 582 Choices: 291, 300, 305, 582 Choices: 291, 305, 315, 582 Real Interest Rate               When the rate of inflation is less than the interest rate on Neha's deposit, the purchasing power of her deposit __________ (options: falls, rises, remains the same) over the course of the year.

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