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Over the Period of 1926-2008, U

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Over the period of 1926-2008, U. S. Treasury bills had an average return of 3.8 percent while inflation averaged 3.1 percent. Based on this historical record, is it safe to assume that an investor in U.S. Treasury bills will enjoy a positive real rate of return each year? Why or why not?

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No. While U.S. Treasury bills had positi...

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