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| rev | Admin | (Created page with "'''Solution: D''' We want the real rates in both countries to be the same. For Canada, <math>i=.18, r=.14</math>. Thus, <math display="block"> i_{\text {real }}=\frac{i-r}{1+r}=\frac{.18-.14}{1+.14} </math> For <math>\mathrm{F}</math>, we want the same real interest rate and <math>r=1.0</math>. We need to find <math>i</math> for F. Thus <math display="block"> \frac{.18-.14}{1+.14}=\frac{i-r}{1+r}=\frac{i-1}{1+1} </math> Solving for <math>i</math> gives <math>i=1...") | Nov 26'23 at 17:33 | +745 |