=+a. Suppose the expected rate of inflation is 1% (so next year, everything at Dollar Barrel will cost $1.01) and Tyra can earn 5% on money that she invests.

Approximately what real rate of interest could Tyra earn if she invests her money? How many items can she buy at Dollar Barrel today, and how many can she buy a year from now if she invests her money and goes shopping later? What is the percentage increase in Tyra’s purchasing power if she waits a year to go shopping? Compare your answer to the approximate real interest rate on Tyra’s investment.