4a) The states that the nominal interest rate equals the real interest rate plus the expected rate of inflation. A) Fisher equation B) Keynesian equation C) Monetarist equation D) Marshall equation and 4b) When the interest rate is low, there are greater incentives to _ fewer incentives to A) nominal: lend; borrow B) real: lend; borrow C) real: borrow; lend D) market: lend; borrow 4c) In which of the following situations would you prefer to be the borrower? A) The interest rate is 9 percent and the expected inflation rate is 7 percent. B) The interest rate is 4 percent and the expected inflation rate is 1 percent. C) The interest rate is 13 percent and the expected inflation rate is 15 percent. D) The interest rate is 25 percent and the expected inflation rate is 50 percent. and that of long-term bonds 4d) If wealth increases, the demand for stocks _.everything else held constant. A) increases, increases B) increases: decreases C) decreases: decreases D) decreases increases