Suppose the one-year interest rate in the United States is 9.5%. What would you expect the interest rate to be in the UK if expected inflation is 5.3% in the United States and 7.85% in the UK?

Select one:

a. 5.19%

b. 7.93%

c. 9.08%

d. 11.12%

e. 9.53%

f. 13.62%

g. 12.15%

h. None of the above

Answer rating: 100% (QA)

UK interest rate US interest ra... View the full answer