If you lend money at a 10% nominal interest rate, but you expect inflation to be 7% over the life of the loan, then you expect your purchasing power to grow at a rate of ___%
The real interest rate is negative when the nominal interest rate is _(greater than, equal to, less than)__ the inflation rate
If the nominal interest rate is 4% and the expected rate of inflation is 2%, then the real interest rate is
A. 3%
B. 1%
C -1%
D. 2%
E 0%