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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 was about while the yr Treasury bills issued at the start of that year offered a nominal rate of 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
The real is thus investors in these bonds decreased their purchasing power over time.
The real rate is thus investors in these bonds increased their purchasing power over time.
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