Question Help Real and nominal rates interest Zone Perell currently has $100 that he can spend today on socks costing $2.50 each. Alternatively, he could invest the $100 in a nisk-free U.S. Treasury security that is expected to eam a 8% nominal rate of interest. The consensus forecast of leading economists is a 6% rate of inflation over the coming year a. How many socks can Zane purchase today? b. How much money will Zane have at the end of 1 year if he forgoes purchasing the socks today and invests his money instead? (ignore taxes.) .. How much would you expect the socks to cost at the end of 1 year in light of the expected inflation? d. Use your findings in parts and to determine how many socks fractions are OK) Zane can purchase at the end of 1 year. In percentage terms, how many more or fewer socks can Zane buy at the end of 1 year? .. What is Zane's real rate of return over the year? How is it related to the percentage change in Zane's buying power found in part d? Explain ol