Suppose the real rate is 2.5 perccent and the inflation rate is 4.7 percent. What rate would you expect to see on a Treasury bill?

Suppose the real rate is 2.5 perccent and the inflation rate is 4.7 percent. What rate would you expect to see on a Treasury bill?

Suppose the real rate is 2.5 perccent and the inflation rate is 4.7 percent.What rate would you expect to see on a Treasury bill? Answer:Nominal rate = (1+Real rate of return) ( 1 + inflation...