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The real rate is 4.1 percent and the inflation rate is 5.7 percent. What rate would you expect to see on a Treasury bill

Respuesta :

Answer:

10%

Explanation:

The rate on a treasury bill is usually the nominal rate.

1 + Nominal rate = (1 + real rate ) x (1 + inflation rate)

(1.041) x (1.057) = 1.10

1.10 - 1 = 0.10 = 10%

Nominal rate = 10%

I hope my answer helps you

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