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If the one year real risk free rate of interest is 1.0% and the expected inflation rate for the upcoming year is 2.0%, what interest

If the one year real risk free rate of interest is 1.0% and the expected inflation rate for the upcoming year is 2.0%, what interest rate would you expect on a one year Treasury bill in ordinary market conditions?

Select one:

a. 1.0 %

b. 3.0 %

c. 2.0 %

d. .5%

e. 4.0 %

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