Question

You observe that the inflation rate in the United States is 2.7 percent per year and that T-bills currently yield 3.8 percent annually. What do you estimate the inflation rate to be in:
a. Australia, if short-term Australian government securities yield 5 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 10 percent per year?


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  • CreatedOctober 01, 2015
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