Question $6$

If the real rate of interest is $3\mathrm{.}4\%$ and the nominal rate of interest is $6\mathrm{.}5\%,$ the rate of inflation is forecast to be approximately $($use simplified Fisher Equation$)$

$2\mathrm{.}8\%$

$3\mathrm{.}1\%$

$3\mathrm{.}6\%$

$4\mathrm{.}2\%$