What Do You Expect to Happen to Prices in Japan

question 68

Multiple Choice

What do you expect to happen to prices in Japan, given nominal interest rates of 10% in Canada and 6% in Japan, and expected Canadian inflation of 6%?

• A)Expected Japanese inflation is 1.79%
• B)Expected Japanese inflation is 2.15%
• C)Expected Japanese inflation is 6.22%
• D)Expected Japanese inflation is 10.00%

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