Answer the following questions about the nominal and real interest rates:

a. What would be the real interest rate if the nominal interest rate were 14 percent and the inflation rate were 10 percent? If the nominal interest rate were 8 percent and the inflation rate were 1 percent?

b. What would happen to the real interest rate if the nominal interest rate went from 9 percent to 15 percent when the inflation rate went from 3 percent to 10 percent? If the nominal interest rate went from 11 percent to 7 percent when the inflation rate went from 8 percent to 4 percent?