Current One-Year Interest Rates Are 4% and 8% in Canada

question 66

Multiple Choice

Current one-year interest rates are 4% and 8% in Canada and Spain respectively.The anticipated inflation in Canada is 2%.If international Fisher effect holds, what is the expected inflation in Spain?

• A)4.00%
• B)4.04%
• C)5.92%
• D)6.00%

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