The Current 1-Year Treasury Rate Is 10 Per Cent

question 13

Multiple Choice

The current 1-year Treasury rate is 10 per cent.It is predicted that the annual inflation rate is going to be 0.50 per cent higher than originally expected.The higher inflation forecasts reflect unexpectedly strong macroeconomic conditions.When the market opens tomorrow,what should the Treasury rate be? (Assume that the real rate of interest is 9.0 per cent.)

• A)9%.
• B)10%.
• C)10.5%.
• D)11%.

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The ability to quickly recover from difficulties; toughness or the capacity to bounce back from adversity.

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The act of stopping an attempt or ceasing to engage in an activity or effort, often due to perceived difficulty or lack of success.

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