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You observe that the inflation rate in the United States is 3.1 percent per year and that T-bills currently yield 3.7 percent annually. What do you estimate the inflation rate to be in: Australia

You observe that the inflation rate in the United States is 3.1 percent per year and that T-bills currently yield 3.7 percent annually. What do you estimate the inflation rate to be in:

  1. Australia, if short-term Australian government securities yield 4 percent per year?
  2. Canada, if short-term Canadian government securities yield 7 percent per year?
  3. Taiwan, if short-term Taiwanese government securities yield 9 percent per year?

Apr 12 2021 View more View Less

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