Business, 08.07.2020 05:01 brainbean

You observe that the inflation rate in the United States is 1.0 percent per year and that T-bills currently yield 1.5 percent annually. Use the approximate international Fisher effect to answer the following questions. a. What do you estimate the inflation rate to be in Australia, if short-term Australian government securities yield 5 percent per year?
b. What do you estimate the inflation rate to be in Canada, if short-term Canadian government securities yield 8 percent per year?
c. What do you estimate the inflation rate to be in Taiwan, if short-term Taiwanese government securities yield 10 percent per year?

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You observe that the inflation rate in the United States is 1.0 percent per year and that T-bills cu...

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