Problem:
You observe that the inflation rate in the United States is 2.6 percent per year and that T-bills currently yield 3.1 percent annually.
Required:
Question 1: What do you estimate the inflation rate to be in Australia, if short-term Australian government securities yield 4 percent per year?
Question 2: What do you estimate the inflation rate to be in Canada, if short-term Canadian government securities yield 7 percent per year?
Question 3: What do you estimate the inflation rate to be in Taiwan, if short-term Taiwanese government securities yield 9 percent per year?
Note: Please show guided help with steps and answer.