Nterpreting inflationary expectations if investors in the, Accounting Basics

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Nterpreting inflationary expectations if investors in the

interpreting Inflationary Expectations If investors in the United States and Canada require the same real interest rate, and the nominal rate of interest is 2 percent higher in Canada, what does this imply about expectations of U.S. inflation and Canadian inflation? What do these inflationary expectations suggest about future exchange rates?

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