If Treasury bills are currently paying 3.05 percent and the inflation rate is 1.89 percent, what is the approximate real rate of interest? The exact real rate?
A) 1.16 percent; 1.14 percent
B) 1.21 percent; 1.14 percent
C) 1.20 percent; 1.21 percent
D) 1.19 percent; 1.16 percent
E) 1.19 percent; 1.21 percent
Correct Answer:
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