9a 9b If inflation during the last 12 months was 2% and the interest rate during that period was 5%, what was the real rate of interest? 2.0% 5.0% Inflation Nominal interest rate if inflation is expected to average 4% during the next year and the real rate is 3%, what should the current rate of interest be? Inflation Real rate of interest 4.0% 3.0% Real rate of interest Nominal rate of interest