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You observe that the inflation rate in the United States is 3.3 percent per year and that T-bills currently yield 3.9 percent annually. What do
You observe that the inflation rate in the United States is 3.3 percent per year and that T-bills currently yield 3.9 percent annually. What do you estimate the inflation rate to be in Australia, if short-term Australian government securities yield 4 percent per year? What do you estimate the inflation rate to be in Canada, if short-term Canadian government securities yield 8 percent per year?
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