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Please show your work to understand the calculations 1)Assume a nominal interest rate on one-year U.S. Treasury Bills of 2.60% and a real rate of

Please show your work to understand the calculations

1)Assume a nominal interest rate on one-year U.S. Treasury Bills of 2.60% and a real rate of interest of 1.00%. Using the Fisher Effect Equation, what is the approximate expected rate of inflation in the U.S. over the next year?

a)

1.00%

b)

2.05%

c)

2.10%

4)

1.60%

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