2. Joe Black loves peanut butter. He has $1,000 that he can spend on peanut butter today. Each pound of peanut butter costs $2.00. Alternatively, he could invest the $1,000 in an account that pays 7.16% nominal interest compounded annually. Economists have agreed that they expect a 1.65% rate of inflation over the next year. a. How many pounds of peanut butter can Joe buy today? b. How much money will Joe have in one year if he invests his $1,000 in an account paying 7.16% interest compounded annually? c. Given the expected 1.65% inflation, how much would you expect a pound of peanut butter to cost in 1 year? d. How many pounds of peanut butter can Joe buy in one year if he invests his $1,000 in the account paying 7.16% interest? e. What is Joes real rate of return over the year? (Measured in the amount of additional pounds of peanut butter he can buy) Round to 2 decimal places (0.00%) f. Use the Fisher Effect to calculate Joes real rate of return. g. Use the approximation formula to calculate the real rate of return.