Question

The real rate is 4.1 percent and the inflation rate is 5.7 percent. What rate would you expect to see on a Treasury bill

Answer 1

10%

Step-by-step explanation:

The rate on a treasury bill is usually the nominal rate.

1 + Nominal rate = (1 + real rate ) x (1 + inflation rate)

(1.041) x (1.057) = 1.10

1.10 - 1 = 0.10 = 10%

Nominal rate = 10%

I hope my answer helps you