Answered: Suppose the real rate for Treasury…

Suppose the real rate for Treasury bills is 6 percent and the inflation rate is 1.4 percent. What is rate do you earn on these bills before inflation? Multiple Choice 8.23% 8.61% 7.48% 6.36% 6.74%

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter13: Inflation

Section: Chapter Questions

Problem 8SQP

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Question

Suppose the real rate for Treasury bills is 6 percent and the inflation rate is 1.4 percent. What is rate do you earn on these bills before inflation? Multiple Choice
8.23%
8.61%
7.48%
6.36%
6.74%

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