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If the Real Return on U

Question 18

Multiple Choice

If the real return on U.S. Treasury bills is 14 percent while the rate of expected inflation is anticipated to be 8 percent, then what should nominal rate of return be? (Round final percentage answer to decimal places.)


A) 14.05%
B) 33.05%
C) 23.12%
D) None of the above.

Correct Answer:

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