Question: I need the math to solve this please. (Answer should be 2%lower) 17) If interest rate parity holds and the annual German nominal interest rate
I need the math to solve this please. (Answer should be 2%lower)
17) If interest rate parity holds and the annual German nominal interest rate is 3 percent and the U.S. annual nominal rate is 5 percent and real interest rates are 2 percent in both countries, then inflation in Germany is about A) 1 percent higher B) 2 percent higher C) 1 percent lower than in the United States
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