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You read an article on the CNBC website which explains the consensus outlook is that the long-run real growth rate of the U.S. economy over
You read an article on the CNBC website which explains the consensus outlook is that the long-run real growth rate of the U.S. economy over the next five-year period will average 3 percent. In addition, a consensus forecast by a group of noted financial analysts suggests that the average annual rate of inflation during this fiveyear period will be about 4 percent. What nominal rate of return would you expect on U.S. government T-bills during this period? Carry four decimal places in your calculations. Report your answer in percentage terms rounded to two decimal places (ex. .01234 should be entered as 1.23)
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