Problem 6. [4 pts] Mr Slow considers choosing between two investments: One guaranteed investment A offers him a return of 8% per year, while another inflation-protected investment B that stipulates 5% per year plus annual inflation rate. Both investments are required to be held for two years. a. If Mr Slow anticipates inflation in the first year to be 2.5%, what is the maximum inflation rate that can occur in the second year in order to make Mr. Slow indifferent to either investment? b. Which investment is likely safer, at least from a potential return standpoint