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Question
Assume a nominal interest rate on one-year U.S. Treasury Bills of 5.30% and a real rate of interest of 1.50%. Using the Fisher Effect Equation, what is the approximate expected rate of inflation in the U.S. over the next year?
a. 3.80%
b. 3.53%
c. 3.80%
d. 6.80%
Answer
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Related questions
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Considering the internal balance in an economy, which of the following could lead to lower interest rate and higher income?
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In foreign exchange forecasting, what is a good forecast?
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Q:
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