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You are given the following interest and inflation rates: Germany interest rate: 7% Canada interest rate: 14% Germany inflation: 1% US inflation: 12% If parity

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You are given the following interest and inflation rates: Germany interest rate: 7% Canada interest rate: 14% Germany inflation: 1% US inflation: 12% If parity conditions hold, the interest rate in the US will approximately be equal to: a. 17% b. 25.00% c. 18.00% d. 20.00% e. -4.00%

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