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resources/type-system/inference.md
@@ -345,6 +345,11 @@ schema.
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`Stream<K>`; let `E` be the type such that `Stream<E>` is a super-interface
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of `S`; and update `T` to be `UP(E, T)`.
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+In these rules, 'in the block' refers to return and yield statements that
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+will complete the execution of the function literal under inference, not
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+the ones, if any, that will complete the execution of a nested function
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+body.
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+
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The **actual returned type** of the function literal is the value of `T` after
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all `return` and `yield` statements in the block body have been considered.
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