Over the past four years, large-company stocks and U. S. Treasury bills have produced the returns stated below. During this period, inflation averaged 2.8 percent. Given this information, the average real rate of return on large-company stocks was ___ percent as compared to percent for Treasury bills.

7.98; 0.92

Explanation:

First we calculate the rate of return on large company stock as follows:

Average nominal return = (0.15 + 0.07 + 0.04 + 0.18)/4 = 0.11

Average real rate: r = (1.11/1.028) - 1 = 7.98 percent

Now we solve the percent for U.S. Treasury Bills

Average nominal return = (0.06 + 0.03 + 0.02 + 0.04)/4 = 0.0375

Average real rate: r = (1.0375/1.028) - 1 = 0.92 percent

Hence, the answer is 7.98% for large-company stocks and 0.92% for Treasury Bills.

is this a

the answer is     d. in our global economy, most job growth will be in services, but manufacturing jobs will exist, too.