A classic example of a discount loan is

If the US Treasury Yield Curve is upward sloping then it is indicating a

	A. downturn in the economy
	B. upturn in the economy
	C. no change to the economy (i.e. the economy is in transition phase)
	D. The US Treasury Yield Curve yield does not signal the direction of the economy.
	E. The US Treasury Yield Curve maps out corporate borrowing levels

Using the Fischer Equation what is the nominal rate of interest if the real rate is 1.6% and expected inflation is 2.3%?