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QUESTION 5 The interest rate on an asset in the US is 8.5% and an identical asset in Germany has an interest rate of
QUESTION 5 The interest rate on an asset in the US is 8.5% and an identical asset in Germany has an interest rate of 8.6%. If the inflation rate in the US is 8.3%, then what is the real rate of interest on the US asset? (Answer as a decimal. Round to the nearest thousandth.)
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