Question $8$

Suppose the real rate is $3\mathrm{.}45$ percent and the inflation rate is $2\mathrm{.}2$ percent. What rate would you expect to earn on a Treasury bill?

$1\mathrm{.}25\%$

$3\mathrm{.}30\%$

$5\mathrm{.}73\%$

$6\mathrm{.}56\%$

$7\mathrm{.}75\%$