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Suppose the one-year interest rate in the United States is 9.5%. What would you expect the interest rate to be in the UK if expected
Suppose the one-year interest rate in the United States is 9.5%. What would you expect the interest rate to be in the UK if expected inflation is 5.3% in the United States and 7.85% in the UK?
Select one:
a.
5.19%
b.
7.93%
c.
9.08%
d.
11.12%
e.
9.53%
f.
13.62%
g.
12.15%
h.
None of the above
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