Business, 05.11.2020 19:10, mochoa4

Suppose that nearly all economic agents expect the inflation rate to be 3% next year. Suppose also that the 52-week Treasury bill presently pays a nominal annual return of 1%. What is the real annual return received by investors who purchase 52-week Treasury bills? Enter it (in percentage points) below. Suppose you deposit $1,000 in a savings account at a bank. The bank promises to pay you interest at an annual rate of 1.75% for as long as you do not make any withdrawals from the account. Note: the interest you earn during a year is calculated by applying the interest rate to the account balance and any earned interest during a year is credited to the savings account. How many years will take for your account balance to reach $2,000, assuming you do not make any withdrawals? Enter this number of years below:

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Suppose that nearly all economic agents expect the inflation rate to be 3% next year. Suppose also t...