5 (6 points) A loan is made to the borrower at 2% base rate and a 1% risk premium. Answer the following question A. If the interest rate charged is 6% and observed inflation is 3%, who is helped and who is hurt? B. If the interest rate charged is 8% and the observed inflation is 3%, who is helped and who is hurt? C. If expected inflation is 2%, what interest rate would ensure that neither the borrower or seller is being made better or worse off