Question: You observe that the inflation rate in the United States

You observe that the inflation rate in the United States is 2.6 percent per year and that T-bills currently yield 3.4 percent annually. What do you estimate the inflation rate to be in:
a. Australia, if short-term Australian government securities yield 4 percent per year?
b. Canada, if short-term Canadian government securities yield 7 percent per year?
c. Taiwan, if short-term Taiwanese government securities yield 9 percent per year?


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  • CreatedMarch 13, 2014
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