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Inflation and Nominal Returns [L04] Suppose the real rate is 2.1 percent and the inflation...

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Inflation and Nominal Returns [L04] Suppose the real rate is 2.1 percent and the inflation rate is 3.4 percent. What rate would you expect to see on a Treasury bill? Nominal and Real Returns (L04] An investment offers a total return of 12.3 per- cent over the coming year. Janice Yellen thinks the total real return on this investment will be only 8 percent. What does Janice believe the inflation rate will be over the next year

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