The current real rate is 1.25% and the inflation rate is 1.40%. What rate would you expect to see on a Treasury bill?

Select one:

a.

1.75%

b.

2.62%

c.

2.67%

d.

2.73%

e.

None of the above.

Question

The current real rate is 1.25% and the inflation rate is 1.40%. What rate would you expect to see on a Treasury bill?       Select one: a. 1.75% b. 2.62% c. 2.67% d. 2.73% e. None of the above.

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