The student has 30000 rubles and decides to save them or spend. If he puts money in the bank, in a year he will get 33600 rubles. Inflation is 14% per year. a) What is the nominal interest rate? b) What is the real interest rate? c) What would you advise the student? d) How would your advice change if the inflation rate drops to 7%, at a constant rate of interest?

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