Answer:
the approximate real rate of interest is 4.3%
Explanation:
The computation of the approximate real rate of interest is as follows;
As we know that
The Approximate Real rate of interest is
= Treasury bills rate - Inflation rate
= 7% - 2.7%
= 4.3%
Hence, the approximate real rate of interest is 4.3%
It could be come by applying the above formula so that the correct percentage could arrive
