Implied Real Interest Rates. Use the table containing economic, financial and business indicators to answer the...

  

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Implied Real Interest Rates. Use the table containing economic, financial and business indicators to answer the following questions. If the nominal interest rate is the government bond rate, and the current change in consumer prices is used as expected inflation, calculate the implied "real" rates of interest by currency. a. Australian dollar "real" rate b. Japanese yen "real" rate c. US dollar "real" rate EXXX If the nominal interest rate is the government bond rate, and the current change in consumer prices is used as expected inflation, calculate the implied "real" rates of interest by currency. a. Australian dollar "real" rate The implied "real" rate of interest for the Australian dollar is 2.47 %. (Round to two decimal places) B C Forecasting the Pan-Pacific Pyramid: Australia, Japan, and the United States Gross Domestic Product (%) Latest Qtr Country Australia Japan 5 United States 7 8 9 Country 10 Australia 11 Japan 12 United States 13 14 15 Country 16 Australia 17 Japan 18 United States 19 Consumer Prices (%) Year Ago Trade Balance Last 12 mos (billion $) 4.7 2.1 2.6 4.3 0.7 2.4 NOS Qtr 3.6 -1.5 4.2 13.2 98.8 810.5 Latest Forecast 2015e Forecast 2015e 2.4 -0.3 2.4 4.4 2.5 2.5 2.2 0 2.8 E Forecast 2016e 3.7 2.3 2.9 4.4 4.4 -5.6 Industrial Production (%) Unemployment Rate(%) Recent Qtr Latest Interest Rates (6) 3-month Latest Current Account Last 12 mos (billion 5) Forecast 15 (% of GDP) Oct 17th -$46.4 $197.8 $793.2 Current Units (per USS) 4.6 4.8 17 6.89 0.69 4.54 1.12 115 1 G 1-yr Govt Latest Year Ago 4.3 3.7 4.9 6.16 1.62 4.55 1.34 119 1 Implied Real Interest Rates. Use the table containing economic, financial and business indicators to answer the following questions. If the nominal interest rate is the government bond rate, and the current change in consumer prices is used as expected inflation, calculate the implied "real" rates of interest by currency. a. Australian dollar "real" rate b. Japanese yen "real" rate c. US dollar "real" rate EXXX If the nominal interest rate is the government bond rate, and the current change in consumer prices is used as expected inflation, calculate the implied "real" rates of interest by currency. a. Australian dollar "real" rate The implied "real" rate of interest for the Australian dollar is 2.47 %. (Round to two decimal places) B C Forecasting the Pan-Pacific Pyramid: Australia, Japan, and the United States Gross Domestic Product (%) Latest Qtr Country Australia Japan 5 United States 7 8 9 Country 10 Australia 11 Japan 12 United States 13 14 15 Country 16 Australia 17 Japan 18 United States 19 Consumer Prices (%) Year Ago Trade Balance Last 12 mos (billion $) 4.7 2.1 2.6 4.3 0.7 2.4 NOS Qtr 3.6 -1.5 4.2 13.2 98.8 810.5 Latest Forecast 2015e Forecast 2015e 2.4 -0.3 2.4 4.4 2.5 2.5 2.2 0 2.8 E Forecast 2016e 3.7 2.3 2.9 4.4 4.4 -5.6 Industrial Production (%) Unemployment Rate(%) Recent Qtr Latest Interest Rates (6) 3-month Latest Current Account Last 12 mos (billion 5) Forecast 15 (% of GDP) Oct 17th -$46.4 $197.8 $793.2 Current Units (per USS) 4.6 4.8 17 6.89 0.69 4.54 1.12 115 1 G 1-yr Govt Latest Year Ago 4.3 3.7 4.9 6.16 1.62 4.55 1.34 119 1

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a Real rate Australia b Real rate Japan C ... View the full answer