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    Figure 1 in the chapter shows the estimated real and nominal rates for three-month Treasury bills. Go to http://www.martincapital.com/charts.htm
    Click on "interest rates and yields" then on "Nominal versus Real Market Rates."
    a. Compare the three-month real rate to the long-term real rate. Which is greater?
    b. Compare the short-term nominal rate to the long-term nominal rate. Which appears most volatile?

    I attached the figure 1.

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    Solution Preview

    The chart that I used to answer your 2 questions is attached. I obtained it from the source you mentioned in the question. Feel free to use it in your answers in you think that will be appropriate.

    Answer a: The three month real rate average over the last ...

    Solution Summary

    The solution answers the question below in great detail.