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Assume that the inflation rate in 2 0 2 2 was about 1 6 . 0 0 % , while the 1 - yr Treasury

Assume that the inflation rate in 2022 was about 16.00%, while the 1-yr Treasury bills issued at the start of that year offered a nominal rate of 10.00%. Which of the following statements is correct?
Purchasing power of money stayed the same over time.
The true increase in purchasing power that resulted from investing in these bonds was 10.00%
The real is -5.17%, thus investors in these bonds decreased their purchasing power over time.
The real rate is 16.00%, thus investors in these bonds increased their purchasing power over time.

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