TIPS are unlike most bonds in that their cash flows increase when the national rate of gross domestic product increases.

Name: TIPS are unlike most bonds in that their cash flows increase when the national rate of gross domestic product increases.
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Question

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TIPS (Treasury Inflation-Protected Securities) have cash flows that increase with inflation, as measured by the Consumer Price Index (CPI), not the national rate of GDP growth.

TIPS Are Unlike Most Bonds in That Their Cash Flows