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Problem 9-14 (algorithmic) Question Help Implied Real Interest Rates. Use the table EEB containing economic, financial, and business indicators to answer the following questions. If
Problem 9-14 (algorithmic) Question Help Implied Real Interest Rates. Use the table EEB 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 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 The implied "real" rate of interest for the Australian dollar is | %. (Round to two decimal places.) Forecasting the Pan-Pacific Pyramid: Australia, Japan, and the United States Industrial Unemployment Production Rate Gross Domestic Product Forecast Forecast Latest Recent Qtr 4.3 % 4.3 % 2.4% Qtr 2015e 2016e Country Australia Japan United States Latest Qtr 4.9% 1.9 % 2.1 % 45% 2.4% 2.4% 3.5 % 2.3% 27 % 4.4% 3.5 % 45% 4.4% 37 % Consumer Prices Interest Rates Forecast 3-month 1-yr Govt Country Australia Japan United States Year Ago Latest 2015e Latest Latest 4.2% 07% 26% 2.8 % -0.2% 26% 2.9 % 0.0 % 27% 6.95 % 0.53 % 452% 6.26 % 1.65 % 4.55 % Trade Trade Balance Last 12 mos (billion $) 13.2 98.3 -810.2 Current Account Current Units (per US$) Country Australia Japan United States Last 12 mos (billion $) -46.7 197.7 -793.8 Forecast 15 (% of GDP) 5.8 % 4.4 % -57 % Oct 17th 1.13 116.00 1.00 Year Ago 1.39 121.00 1.00
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