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:

Conscious

The state of being aware of and able to think about one's surroundings, thoughts, and feelings.

Critical Rationalists

Individuals who advocate for the approach of systematically questioning and critically examining one's own beliefs and views.

Abraham and Isaac

A biblical story from the Book of Genesis about Abraham's faith being tested by God, who commands him to sacrifice his son Isaac, before stopping him at the last moment.

Essentially

At its core or in its most important aspects.