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Treasury bills are currently paying 7 percent and the inflation rate is 2.9 percent. a. What is the approximate real rate of interest? (Enter your

image text in transcribed Treasury bills are currently paying 7 percent and the inflation rate is 2.9 percent. a. What is the approximate real rate of interest? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the exact real rate? (Do not round intermediate calculations and enter you answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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