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Assume the US and Mexico have the same expected real rate of interest. If inflation in the US is 7% per year, interest rates rates
Assume the US and Mexico have the same expected real rate of interest. If inflation in the US is 7% per year, interest rates rates in the US are at 3% per year, and interest rates in Mexico are at 8.2%, what inflation rate do you expect in Mexico? Give your answer as a percentage (but do not include the "\%" symbol)
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