Problem
Suppose the nominal interest rate is 12% and inflation is 9%. Find the real interest rate. Starting with $100, find the nominal and real return to saving. If expected inflation rate rises to 15% but the real interest rate is unchanged, find the nominal rate and the nominal and real returns to $100.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.