An investment offers a 10.0 percent total return over the coming year. Bill Bernanke thinks the total real return on this investment will be only 6.0 percent. What does Bill believe the inflation rate will be over the next year? Use the Fisher Effect Formula.

rev: 09_18_2012

Multiple Choice

• -3.64%

• 4.34%

• 4.91%

• 3.77%

• 2.64%