1)The nominal rate of a bond or investment is based on the real rate as well as the expected inflation rate. The inflation rate also affects the real rate of return. If the inflation rate is higher than is expected, which of the following outcomes is most likely? A)The demand for funds from borrowers will decrease B)The investor's real rate of return will be lower than expected C)The investor's real rate of return will be higher than expected D)The supply of funds from investors will decrease