1. An investment offers a 9.5 percent total return over the coming year. Bill Bernanke thinks the total real return on this investment will be only 3.0 percent. What does Bill believe the inflation rate will be over the next year?
8.20%
7.26%
6.31%
-5.94%
4.42%
2. Say you own an asset that had a total return last year of 18 percent. If the inflation rate last year was 2.5 percent, what was your real return?
15.12%
15.22%
-13.14%
15.32%
15.02%