An investor wants to be able to buy 4 percent more goods and services in the future in order to induce her to invest today. During the investment period prices are expected to rise by 2 percent. Which...

An investor wants to be able to buy 4 percent more goods and services in the future in order to induce her to invest today. During the investment period prices are expected to rise by 2 percent. Which statement (s) below is true ?

i  4 percent is the desired real risk free interest rate.

ii. 6 prevéis the approximate nominal rate of interest required.

iii.  2 percent is the expected inflation rate over the period

I. only ?

I I only ?

iii only ?

i and ii only ?