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Question
If interest rate parity holds and the annual Taiwan nominal interest rate is 7% and the U.S. annual nominal rate is 5% and real interest rates are 2% in both countries, then inflation in Taiwan is about _____ than in the U.S.a. 1% higher
b. 2% higher
c. 1% lower
d. 2% lower
e. 3% lower
Answer
This answer is hidden. It contains 3 characters.
Related questions
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