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Title: If the real interest rate is 5%, the rate of inflation in the United States is 6%, and the rate of ... Post by: campario on Mar 1, 2017 If the real interest rate is 5%, the rate of inflation in the United States is 6%, and the rate of inflation in the United Kingdom is 3%, which of the following statements would NOT be true?
A) The nominal rate of interest in the U.S. would be greater than the nominal interest rate in the U.K. B) The difference between the U.K. and U.S. interest rates is a function of the difference between their inflation rates. C) The nominal rate of interest in the United States and the United Kingdom would be the same because of purchasing power parity. D) Investors would get a higher return on their money in the United States. Title: Re: If the real interest rate is 5%, the rate of inflation in the United States is 6%, and the rate ... Post by: Kitechi on Mar 1, 2017 Content hidden
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