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You observe that the inflation rate in the United States is 2.0 percent per year and that T-bills currently yield 2.5 percent annually. a. What

You observe that the inflation rate in the United States is 2.0 percent per year and that T-bills currently yield 2.5 percent annually.

a.

What do you estimate the inflation rate to be in Australia, if short-term Australian government securities yield 5 percent per year? (Do not round intermediate calculations and 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 8 percent per year? (Do not round intermediate calculations and 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 10 percent per year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.)

Inflation rate %

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