If the Real Return on Government Bonds Is 3 Percent

question 56

Multiple Choice

If the real return on government bonds is 3 percent and the expected rate of inflation is 4 percent, then the cost of holding money is ______ percent.

• A) 1
• B) 3
• C) 4
• D) 7

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Definitions:

Medical Asepsis

Practices aimed at reducing the number and spread of pathogens to prevent infection, typically in medical settings.

Fenestrated

Having openings or perforations, often used to describe a type of surgical material or anatomical structure with natural or artificial holes.

Window

An opening in a wall or structure, typically filled with glass, that lets light and air into the space and allows occupants to see out.

Opening

An initial part or opportunity in various contexts, such as in an argument, a job, or an anatomical structure.