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If Inflation Is Anticipated to Be 10 Percent During the Next

Question 59

Multiple Choice

If inflation is anticipated to be 10 percent during the next year while a nominal rate of 20 percent will be earned on government bonds, then what is the accurate real rate of return on these securities?


A) 20.00%
B) 10.00%
C) 9.09%
D) None of the above

Correct Answer:

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