Question: Use the information shown in the table below to answer the next questions. Country Inflation rate Reference Period China 2.5% August 2022 Japan 3% August

Use the information shown in the table below to answer the next questions.

Country Inflation rate Reference Period
China 2.5% August 2022
Japan 3% August 2022
Saudi Arabia 3% August 2022
Switzerland 3.5% August 2022
South Korea 5.7% August 2022
Germany 7.9% August 2022
United States of America 8.3% August 2022

c) Will U.S. interest rates be higher or lower than Japanese interest rates and will interest rate parity hold? Why or why not?

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