Problem
1. The real interest rate is 4 percent, and the nominal interest rate is 6 percent. What is the anticipated rate of inflation?
2. Currently, the price index used to calculate the inflation rate is equal to 90. The general expectation throughout the economy is that next year its value will be 99. The current nominal interest rate is 12 percent. What is the real interest rate?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.