Treasury bills have grown faster than the rate of inﬂation over the period 1957-2005.

Question

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Treasury bills are known to have a low rate of return, but they are also considered to be safe investments. Over the period of 1957-2005, the rate of inflation, as measured by the Consumer Price Index (CPI), has been steadily rising while the return on Treasury bills has remained stable. Despite the low rate of return, Treasury bills have still managed to outpace inflation over this period.

Treasury Bills Have Grown Faster Than the Rate of Inﬂation