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Suppose that in the US, the one-year interest rate is 3.79% and the expected rate of inflation is 2%. Suppose further that in the Eurozone,

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Suppose that in the US, the one-year interest rate is 3.79% and the expected rate of inflation is 2%. Suppose further that in the Eurozone, the expected rate of inflation is 1.35%. The expected rate of inflation in Australia is 4% If international parity conditions hold, then what is the nominal interest rate in Australia? a 5.825% Ob682596 OC 3.105% Od. There is not enough information in this question to calculate the nominal interest rate in Australia None of the options in this question are correct Oe

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