following argument regarding the effect of rising expected inflation rate by T (true) or F (false). (1)As nominal interest rate also rises proportionately, there is no effect on real interest rate. (2)Real interest rate rises because nominal interest rate rises higher than expected inflation rate. (3)Real interest rate falls because nominal interest rate rises lower than expected inflation rate. (4)Rise in expected inflation rate causes nominal interest rate increases. So reduction in investment causes decrease in real GDP