Implied Real Interest Rates. Use the tablecontaining economic, financial, and business indicators to answer the following questions. If the nominalinterest rate is the government bond rate, and the current change in consumer prices is used as expected inflation, calculate the implied "real" rates ofinterest by currency.a. Australian dollar "real" rateb. Japanese yen "real" ratec. U.S. dollar "real" rateIf the nominal interest rate is the government bond rate, and the current change in consumer prices is used as expected inflation, calculate the implied "real"rates of interest by currency.a. Australian dollar "real" rateThe implied "real" rate of interest for the Australian dollar is %. (Round to two decimal places.) 11/17/21, 1:55 AMData TableThe table below contains economic, financial, and business indicators from 2015:Forecasting the Pan-Pacific Pyramid: Australia, Japan, and the United StatesIndustrialUnemploymentGross Domestic ProductProductionRateForecastForecastCountryLatest QtrQtr2015e2016eRecent QtrLatestAustralia4.3 %3.8 %4.1 %3.5 %4.6 %4.2 %Jаpan1.6 %-1.2 %2.0 %1.9 %4.3 %3.8 %United States1.9 %3.8 %2.0 %2.2 %1.9 %4.7 %Consumer PricesInterest RatesForecast3-month1-yr GovtCountryYear AgoLatest2015eLatestLatestAustralia4.0 %2.1 %2.4 %6.90 %6.23 %Japan0.9 %-0.2 %0.0 %0.73 %1.65 %United States2.1 %2.8 %2.8 %4.72 %4.54 %TradeBalanceCurrent AccountCurrent Units (per US$)Last 12 moSLast 12 mosForecast 15Country(billion $)(billion $)(% of GDP)Oct 17thYear AgoAustralia-13.0-47.0-5.7 %1.121.33Japan98.1197.54.6 %117.00119.00United States-810.7-793.2-5.6 %1.001.00Note: Unless otherwise noted, percentages are percentage changes over one year. Rec Qtr = recent quarter. Values for 2015eare estimates or forecasts.https://mylab.pearson.com/Student/PlayerHomework.aspx?homeworkId=612921036&questionId=1&flushed=false&cId=6748855¢erwin=yes1/2

*Answer: answers Particulars Formula Calculation Implies Real Rate a.…

Industrial Une Gross Domestic Product Production Forecast Forecast Latest Qtr Qtr 2015e 2016e Recent Qtr 4.3 % 3.8 % 4.1 % 3.5 % 4.6 % 1.6 % -1.2 % 2.0 % 1.9 % 4.3 % 1.9 % 3.8 % 2.0 % 2.2 % 1.9 % Consumer Prices Interest Rate Forecast 3-month Year Ago Latest 2015e Latest 4.0 % 2.1 % 2.4 % 6.90 % 0.9 % -0.2 % 0.0 % 0.73 % 2.1 % 2.8 % 2.8 % 4.72 %

Industrial Une Gross Domestic Product Production Forecast Forecast Latest Qtr Qtr 2015e 2016e Recent Qtr 4.3 % 3.8 % 4.1 % 3.5 % 4.6 % 1.6 % -1.2 % 2.0 % 1.9 % 4.3 % 1.9 % 3.8 % 2.0 % 2.2 % 1.9 % Consumer Prices Interest Rate Forecast 3-month Year Ago Latest 2015e Latest 4.0 % 2.1 % 2.4 % 6.90 % 0.9 % -0.2 % 0.0 % 0.73 % 2.1 % 2.8 % 2.8 % 4.72 %

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 13P

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