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1 1 16. Assume a nominal interest rate on one-year U.S. Treasury Bills of 5% and a real rate of interest of 2%. Using the

1 1 16. Assume a nominal interest rate on one-year U.S. Treasury Bills of 5% and a real rate of interest of 2%. Using the Fisher Effect Equation, what is the expected rate of inflation in the U.S. over the next year? 3

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