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For each of the following years, determine the real interest rate. Find the difference between this rate and the desired rei interest rate and explain

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For each of the following years, determine the real interest rate. Find the difference between this rate and the desired rei interest rate and explain how any difference affects borrowers and lenders. Write out percentage rates as whole numbers eg. 5%. a. In year 1, the nominal interest rate is 7%, the inflation premium on loans is 4%, and actual rate of inflation is 5%. The real interest rate is %, the desired real interest is (Click to select) v . 96, borrowers are: and lenders are b. In year 2, the nominal interest rate is 8%, the inflation premium is 5%, and the actual rate of inflation is 3%. The real interest rate is %, the desired real interest is (Click to select) v . %, borrowers are (Click to select) v and lenders are c. In year 3, the nominal interest rate is 6%, the inflation premium is 3%, and the actual rate of inflation is 3%. The real interest rate is %, the desired real interest is (Click to select) v . %, borrowers are (Click to select) v and lenders are For each of the following years, determine the real interest rate. Find the difference between this rate and the desired real interest rate and explain how any difference affects borrowers and lenders. Write out percentage rates as whoIe numbers 6.9. 5%. a. In year 'I, the nominal interest rate is 7%, the inflation premium on loans is 4%, and actual rate of inflation is 5%. The real interest rate is %, the desired real interest is %, borrowers are; (Click to select) v Eand lenders are (Click to select) V . (Click to select) b. In year 2, the nominal interest rate is 8%, the inflation premium is 5%, and the actual unaffected s 3%. worse off The real interest rate is %, the desired real interest is %, borrowers are (Click to select) v and lenders are (Click to select) v . c. In year 3, the nominal interest rate is 6%, the inflation premium is 3%, and the actual rate of inflation is 3%. The real interest rate is %, the desired real interest is %, borrowers are (Click to select) v and lenders are (Click to select) v

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