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4. In period 16 you invest in an interestbearing bank account a dollar amount worth 5 baskets of consumption. A year later (period t +
4. In period 16 you invest in an interestbearing bank account a dollar amount worth 5 baskets of consumption. A year later (period t + 1) your investment has grown to a dollar amount worth 5.03 baskets of consumption. The price of the basket of consumption is $850 in period t and $884 in period t + 1. (a) Calculate the real interest rate on your investment from period t to 15+ 1. (b) Calculate the nominal interest rate on your investment from period t to t + 1
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