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D For questions 8 and 9 assume that the equilibrium interest rate is 5%. For different values of expected inflation and actual inflation find the

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D For questions 8 and 9 assume that the equilibrium interest rate is 5%. For different values of expected inflation and actual inflation find the real interest rate and whether wealth is transferred from borrowers to lenders (or vice versa). D Question 8 1 pts ET = 3%; 7 = 3.5% 4.5%; benefits lenders 5.5%; benefits lenders 5.5%; benefits borrowers 4.5%; benefits borrowers

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