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Assume a nominal interest rate on one-year U.S. Treasury Bills of 3.65% and a real rate of interest of 2.10%. Using the Fisher Effect

 

Assume a nominal interest rate on one-year U.S. Treasury Bills of 3.65% and a real rate of interest of 2.10%. Using the Fisher Effect Equation, what is the exact expected rate of inflation in the U.S. over the next year?

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