Question
You observe that the inflation rate in the United States is 1.2 percent per year and that T-bills currently yield 1.7 percent annually. a. What
You observe that the inflation rate in the United States is 1.2 percent per year and that T-bills currently yield 1.7 percent annually.
a. What do you estimate the inflation rate to be in Australia, if short-term Australian government securities yield 7 percent per year? (Round your answer 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 10 percent per year? (Round your answer 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 12 percent per year? (Round your answer to 1 decimal place. (e.g., 32.1)) Inflation rate %
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