If Treasury bills are currently paying 3.2 percent and the inflation rate is 2.8 percent,what is the approximate real rate of interest? The exact real rate?
A) 0.40 percent; 3.89 percent
B) 0.40 percent; 3.98 percent
C) 6.00 percent; 5.67 percent
D) 6.00 percent; 5.87 percent
E) 6.00 percent; 5.92 percent
Correct Answer:
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