Expected Real Rates of Interest for Five CountriesCountryNominal InterestInflation RateExpected RealRate of InterestRateForecastAustralia4.5%3.1%Japan0.1%1%Brazil4.6%6.15%South Africa6.5%4.2%United States1.2%- 0.95%Source: Trading Economics, September, 2010Table 12.1Refer to Table 12.1. Assuming the inflation rate forecast to be accurate, which nation would pay the highest nominal rate of return?O A. AustraliaO B. South AfricaO C. the United StatesO D. BrazilClick to select your answer.

Interest refers to the amount charged by the lender on the lent amount. The borrower of the loan is…

Answered: Table 12.1 ofer to Table 12.1. Assuming…

Table 12.1 ofer to Table 12.1. Assuming the inflation rate forecast to be accurate, which nation would pay the highest nominal rate of return?

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter9: Forecasting Exchange Rates

Section: Chapter Questions

Problem 28QA

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