One-year Treasury bill rates in 20XX averaged 5.15 percent and inflation for the year was 7.3 percent. If investors had expected the same inflation rate as that realized, calculate the real interest rate for 20XX according to the Fisher effect.
A) 0.00 percent
B) −2.15 percent
C) 2.15 percent
D) 3.95 percent
Correct Answer:
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