Check my wor A bank wants to earn a real return of 5% on a loan. Suppose the bank expects the inflation rate to be 4%. Instructions: Enter your answer as a whole number. a. What is the minimum nominal interest rate the bank will charge for a loan? % b. Suppose the bank changes its expectations and believes the inflation rate will be higher than 4%. How will the bank ok respond? O increasing the nominal interest rate nt O decreasing the nominal interest rate ences O decreasing the real interest rate O increasing the real interest rate