8. In which case below lenders gain the most? a. b. the nominal interest rate = 4% and inflation = 3% the nominal interest rate = 3% and inflation = 1% the nominal interest rate = 2% and inflation = -2% the nominal interest rate 1% and inflation = -4% c. d. 9. When inflation falls, people a. b. c. make less frequent trips to the bank and firms make less frequent price changes. make less frequent trips to the bank while firms make more frequent price changes. make more frequent trips to the bank while firms make less frequent price changes. make more frequent trips to the bank and firms make more frequent price changes. d. 10. A policy intended to reduce unemployment by taking advantage of a tradeoff between inflation and unemployment leads to a. both higher inflation and higher unemployment in the long run. b. higher inflation and no change in unemployment in the long run. the same inflation rate and lower unemployment in the long run. d. higher inflation and lower unemployment in the long run c. interest rate, and money demand depends on 11. Investment depends on the the interest rate. a. b. real; real nominal; nominal real; nominal nominal; real c. d