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What Has Been the Relationship Between T-Bill Rates and Inflation

Question 46

Multiple Choice

What has been the relationship between T-Bill rates and inflation rates since the 1980s


A) The T-Bill rate was sometimes higher than and sometimes lower than the inflation rate.
B) The T-Bill rate has equaled the inflation rate plus a constant percentage.
C) The inflation rate has equaled the T-Bill rate plus a constant percentage.
D) The T-Bill rate has been higher than the inflation rate almost the entire period.
E) The T-Bill rate has been lower than the inflation rate almost the entire period.

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