If a 3-month Treasury bill pays 5.5% and the change in the consumer price index (CPI) is 4.7%, what is the real interest rate (the true return to lending)
A. 10.2%
B. 0.8%
C. 5.5%
D. 4.7%
Answer: B. 0.8%
If a 3-month Treasury bill pays 5.5% and the change in the consumer price index (CPI) is 4.7%, what is the real interest rate (the true return to lending)
A. 10.2%
B. 0.8%
C. 5.5%
D. 4.7%
Answer: B. 0.8%