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An investment offers a 16% total return over the coming year. Bill Morneau thinks the total real return on this investment will be only 12%.

An investment offers a 16% total return over the coming year. Bill Morneau thinks the total real return on this investment will be only 12%. What does Morneau believe the inflation rate will be over the next year? (Do not round intermediate calculations. Round the final answer to 2 decimal places.).

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