Final answer:
d. It depends
The relationship between EAR and APR when the compounding period is more than one year depends on the frequency of compounding; it can result in EAR being higher than, equal to, or even lower than APR based on the specifics of the compounding.
Step-by-step explanation:
If the compounding period is more than 1 year, the correct answer is: d. It depends. This is because the relationship between the Effective Annual Rate (EAR) and the Annual Percentage Rate (APR) depends on the number of compounding periods and the interest rate. If compounding occurs more frequently than annually, EAR will be higher than APR due to the effect of compounding interest more often. If compounding occurs annually, EAR equals APR as there is no additional compounding effect within the year.