Business, 15.04.2020 00:52 evere11605

If interest rate parity holds and the annual German nominal interest rate is 3 percent and the U. S. annual nominal rate is 5 percent and real interest rates are 2 percent in both countries, then inflation in Germany is about than in the United States.
A) 2 percent higher
B) 2 percent lower
C) 1 percent higher
D) 1 percent lower
E) 4 percent lower

Answers: 2

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If interest rate parity holds and the annual German nominal interest rate is 3 percent and the U. S....