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Suppose the real rate is 5.5 percent and the inflation rate is 2 percent. What rate would you expect to see on a Treasury bill?

Suppose the real rate is 5.5 percent and the inflation rate is 2 percent. What rate would you expect to see on a Treasury bill?

Multiple Choice:

  • 7.61%

  • 8.75%

  • 6.47%

  • 8.37%

  • 6.85%

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