Macroeconomics 13th Edition by William Baumol ,Alan Blinder

تمرين 4

Long-term government bonds now pay approximately 3 percent nominal interest. Would you prefer to trade yours in for an indexed bond that paid a 1 percent real rate of interest What if the real interest rate offered were zeroed What if it were negative₁ percent What do your answers to these questions reveal about your personal beliefs about future inflation