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Based on the international Fisher effect, if U.S. investors expect a 7% rate of domestic inflation over one year, and a 4% rate of inflation
Based on the international Fisher effect, if U.S. investors expect a 7% rate of domestic inflation over one year, and a 4% rate of inflation in European countries that use the euro, and demand a 2% real return on investments over one year, what would be the nominal interest rate on one-year U.S. Treasury?
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