If Investors Expect a Zero Rate of Inflation, Then the Nominal

question 40

True/False

If investors expect a zero rate of inflation, then the nominal rate of return on a short-term U.S. Treasury bond should be equal to the real risk-free rate, r*.

---

Definitions:

Ion Channel-linked Receptor

A type of membrane receptor that directly controls the opening of an ion channel upon activation, leading to changes in cell polarization.

Barbiturates

A class of drugs that act as central nervous system depressants, used for their sedative, hypnotic, and anxiolytic properties.

Benzodiazepine Drugs

A class of psychoactive substances that act as central nervous system depressants and are used as sedatives, anxiolytics, muscle relaxants, or anticonvulsants.

GABA Receptors

Proteins found in the brain and nervous system that respond to the neurotransmitter GABA (gamma-aminobutyric acid), playing a key role in reducing neuronal excitability throughout the nervous system.