Question

Suppose the real rate is 2.5 percent and the inflation rate is 4.1 percent. what rate would you expect to see on a treasury bill?

Answer 1

Thank you for posting your question here at brainly. The rate that would you expect to see on a treasury bill is 3.67%. Below is the solution:

(1+R)= (1+r)*(1+h)
R=((1+0.025)*(1+0.09))-1
H=3.67%