The following information has been collected from the respective areas: Assumptions London New York Spot exchange rate
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Question:
The following information has been collected from the respective areas:
Assumptions London New York
Spot exchange rate ($/) 1.3264 1.3264
One-year Treasury bill rate 3.74% 4.19%
Expected inflation rate Unknown 1.250%
What does the above information imply the expected inflation rate for Europe?
Answer as a percentage, with two decimals.
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