Determine real rate of interest

Reference no: EM1313981

Short term Treasury bills [3 and 6 month] have current annual rates of interest around 0.5%. Use that info plus your best forecast of inflation to calculate the real rate of interest on those bills.

If it becomes negative, what does that mean for the economy, for borrowers and for investors.
If the \"Bailout\" goes forward, what is that likely to do to rates?

Reference no: EM1313981

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Macroeconomics Questions & Answers

Find real rate of interest

Short term Treasury bills [3 and 6 month] have current annual rates of interest around 0.5%. Use that info plus your best forecast of inflation to calculate the real rate of interest on those bills.

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