Real and nominal rates interest Zane Perelli currently has $108 that he can spend today on socks costing $2.70 each. Alternatively, he could invest the $108 in a risk-free US Treasury security that is expected to earn a 9% nominal rate of interest. The consensus forecast of leading economists is a 4% 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? (lgnore taxes.) c. 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 b and c 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? e. 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