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Zane Perelli currently has $104 that he can spend today on socks costing $2.60 each. Alternatively, he could invest the $104 in a risk-free U.S.
Zane Perelli currently has
$104
that he can spend today on socks costing
$2.60
each. Alternatively, he could invest the
$104
in a risk-free U.S. Treasury security that is expected to earn a
11%
nominal rate of interest. The consensus forecast of leading economists is a
5%
rate of inflation over the coming year.
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