Question: Note: At lease one and possibly more than one item is correct. Please / in the parentheses in front of the items that you think
Note: At lease one and possibly more than one item is correct. Please "/" in the parentheses in front of the items that you think are correct. Leave blank the parentheses in front of the items that you think are incorrect. Each item is worth 0.5 point. 1. Mark buys a one-year German government bond for $400. He receives principal and interest totaling $436 one year later. During the year the GDP deflator rose from 150 to 162, but he had thought the price index would be at 159 by the end of the year. Which of the following statement(s) is (are) correct? ( a. Mark had expected the real interest rate to be 1% ( ) b. Mark had expected the real interest rate to be 3% ( ) c. Mark had expected the inflation rate to be 6% ( d. Mark had expected the inflation rate to be 8% ( ) e. The actual inflation rate was 6% ( f. The actual real interest rate was 1%
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