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The interest rate on an asset in the US is 7 . 1 % and an identical asset in Germany has an interest rate of

The interest rate on an asset in the US is 7.1% and an identical asset in Germany has an interest rate of 5.6%. If the inflation rate in the US is 3.5%, then what is the German inflation rate? (Answer as a decimal. Round to the nearest thousandth.)

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