Implied Real Interest Rates.Use the table

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containing economic, financial, and business indicators to answer the following questions. If the nominal interest rate is the government bond rate, and the current change in consumer prices is used as expected inflation, calculate the implied "real" rates of interest by currency.

a. Australian dollar "real" rate

b. Japanese yen "real" rate

c. U.S. dollar "real" rate

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The table below contains economic, financial, and business indicators from 2015:

Forecasting the Pan-Pacific Pyramid: Australia, Japan, and the United States
											Industrial			Unemployment
		Gross Domestic Product									Production			Rate
						Forecast		Forecast
Country		Latest Qtr		Qtr		2015e		2016e			Recent Qtr			Latest
Australia		4.3	%	3.5	%	4.2	%	3.4	%		4.2	%		4.3	%
Japan		1.7	%	-1.5	%	2.2	%	2.3	%		4.8	%		3.5	%
United States		1.8	%	3.8	%	2.2	%	2.5	%		2.2	%		4.6	%
		Consumer Prices									Interest Rates
						Forecast					3-month			1-yr Govt
Country		Year Ago		Latest		2015e					Latest			Latest
Australia		4.1	%	2.1	%	2.7	%				6.76	%		6.22	%
Japan		0.8	%	-0.5	%	0.0	%				0.61	%		1.66	%
United States		2.3	%	2.4	%	3.2	%				4.57	%		4.54	%
		Trade
		Balance			Current Account						Current Units (per US$)
		Last 12 mos			Last 12 mos			Forecast 15
Country		(billion $)			(billion $)			(% of GDP)			Oct 17th			Year Ago
Australia		-12.8			-46.7			-5.7	%		1.12			1.37
Japan		98.1			197.4			4.4	%		115.00			120.00
United States		-810.4			-793.7			-5.5	%		1.00			1.00
Note: Unless otherwise noted, percentages are percentage changes over one year. Rec Qtr = recent quarter. Values for 2015e are estimates or forecasts.