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Expected Real Rates of Interest for Five CountriesCountryNominal Interest RateInflation Rate ...

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Expected Real Rates of Interest for Five CountriesCountryNominal Interest RateInflation Rate ...

Expected Real Rates of Interest for Five Countries

Country	Nominal Interest Rate	Inflation Rate Forecast	Expected Real Rate of Interest
Australia	4.5%	3.1%
Japan	0.1%		1%
Brazil		4.6%	6.15%
South Africa	6.5%	4.2%
United States		1.2%	-0.95%

Source: Trading Economics, September, 2010

Table 12.1

Refer to Table 12.1. The expected real rate of interest for Australia is

▸ -1.4%.

▸ 1.4%.

▸ 6.9%.

▸ can not be determined from the information provided.

Textbook

Macroeconomics: Principles, Applications and Tools

Edition: 7^th

Authors: O'Sullivan, Sheffrin, Perez

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