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Inflation rate in the united states

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Reference no: EM131456934

If interest rates in the United States is 5% per year and in Australia it is 8%, and inflation rate in Australia is 6%, then using the Fisher effect, one can predict that the inflation rate in the United States is:

a) 2%.

b) 3%.

c) 6%.

d) 4%

Reference no: EM131456934

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