At the end of each line, we show the nominal value in 2006 of a $1 investment in stocks, bonds, and bills. Calculate the ratio of the 2006 value of $1 invested in stocks divided by the 2006 value of $1 invested in bonds. Now recalculate this ratio using the real values. What do you find?
Refer to Figure.

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Value in $(log scale) 100,000 e Stocks Bonds $21,536 10,000 Inflation -!。Bills 1,000- $175 $66 100m $24 10- 1900 1940 1960 1980 2000 2006 2020 Year 1920