Given the nominal interest rate of 13% and the expected inflation of 15%, then the value of the real interest rate is ___ ?

2. With the real interest rate equal to 3% and the expected inflation equal to 2%, then the value of the nominal interest rate is___?

3. A lender prefers a (high or lower) real interest rate while a borrower prefers a (higher or lower) real interest rate higher lowreal interest rate.