Harry expect an inflation rate of 4 1st attempt Part 1 1 point The expected real interest rate on the loan is Part 3 2 points erest rate of 9 When she borrows the money both she and Part 2 1 point Suppose that when Sally pays back the loan after one year the actual inflation rate turns out to be 3 The actual real interest rate on the loan is See Hint a If the inflation rate turned out to be higher than expected then Sally is bette Sally is better off and Harry b But if inflation turned out to be lower than expected then Sally is is worse off See Hint See Hint