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According to the International Fisher effect, if U.S. investors expect a 0.06 rate of domestic inflation over one year, and a .03 rate of inflation

According to the International Fisher effect, if U.S. investors expect a 0.06 rate of domestic inflation over one year, and a .03 rate of inflation in European countries that use the euro, and require a 0.02 real return on investments over one year, the nominal interest rate on oneyear U.S. Treasury securities would be:

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