Question: Question 6 (10 points) Problem 6: Nominal and Real Returns. An investment offers a 4% total return over the coming year. Crystal Prediction thinks the

Question 6 (10 points) Problem 6: Nominal and Real Returns. An investment offers a 4% total return over the coming year. Crystal Prediction thinks the total real return on this investment will be only 2.25%. Given this, one can infer that Crystal believes the inflation rate will be % over the next year. (Do not ignore the cross-product terms)

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