Question

An investment offers a total return of 14 percent over the coming year. Alex Hamilton thinks the total real return on this investment will be only 8.1 percent. What does Alex believe the inflation rate will be over the next year?

Answer 1

5.9 percent

Step-by-step explanation:

Inflation rate = Total return - Total real return

14% - 8.1% = 5.9%

I hope my answer helps you