13. Brandon lent money to Peter for one year at a nominal interest rate of 4% in anticipation of earning a real return of 3%. However. when the loan was repaid with interest. Brandon had less purchasing power than when the loan originated a year earlier. In other words, Brandon was able to buy more good with the original loan amount than he was able to buy with the repaid principal plus interest. We can conclude that the actual ination rate over the course of the loan was a. greater than 1%. but less than 3% b. greater than 3%. but less than 4% c. greater than 1%. but less than 4% d. greater than 4%