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You observe that the inflation rate in the United States is 3.5 percent per year and that T- bills currently yield 4.1 percent annually. a.
You observe that the inflation rate in the United States is 3.5 percent per year and that T- bills currently yield 4.1 percent annually. a. What do you estimate the inflation rate to be in Australia, if short-term Australian government securities yield 4 percent per year? (Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) Inflation rate % b. What do you estimate the inflation rate to be in Canada, if short-term Canadian government securities yield 7 percent per year? (Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) Inflation rate % c. What do you estimate the inflation rate to be in Taiwan, if short-term Taiwanese government securities yield 9 percent per year? (Enter your answer as a percent rounded to 1 decimal place. e.a.. 32.1.)
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