25. Let i denote the nominal interest rate, r denote the real interest rate, and INF denote inflation. Consider the high-inflation state involving INF = 9%, low-inflation state involving INF = 1%,and suppose the TIPS under consideration have r = 2%, and the regular Treasury bonds under consideration have i = 6% a) To gain $1 of Wow, how much money does an investor have to transfer out of TIPS and into regular Treasury bonds? b) Given your answer in part a, how much Wine Will the investor have given up by moving that amount of money out of TIPS and into regular Treasury bonds? c) Given your answers in parts a and b, compute the slope of the budget line that has high-inflation state wealth Wine on the y-axis and low-inflation-state wealth Wlow on the x-axis. d) How much Wine does a bond investor have to give up for each additional dollar of Wiow? How much Wlow does a bond investor have to giver up for each additional dollar of WINE? 25. Let i denote the nominal interest rate, r denote the real interest rate, and INF denote inflation. Consider the high-inflation state involving INF = 9%, low-inflation state involving INF = 1%,and suppose the TIPS under consideration have r = 2%, and the regular Treasury bonds under consideration have i = 6% a) To gain $1 of Wow, how much money does an investor have to transfer out of TIPS and into regular Treasury bonds? b) Given your answer in part a, how much Wine Will the investor have given up by moving that amount of money out of TIPS and into regular Treasury bonds? c) Given your answers in parts a and b, compute the slope of the budget line that has high-inflation state wealth Wine on the y-axis and low-inflation-state wealth Wlow on the x-axis. d) How much Wine does a bond investor have to give up for each additional dollar of Wiow? How much Wlow does a bond investor have to giver up for each additional dollar of WINE