If the interest rate is $3\%$ and the inflation rate is higher than expected at $5\%,$ the real interest rate is $\_\_\_\_\_.$ In this environment, it is better to be a $\_\_\_\_\_\_\_\_\_\_.$

Question $6$Select one:

A$.$

$-2\%$; lender

B$.$

$8\%$; borrower

C$.$

$-2\%$; borrower

D$.$

$8\%$; lender

E$.$

$2\%$; borrower