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In which of the following situations would the nominal interest rate be the highest 1.The real interest rate is -1 percent, and the expected inflation

In which of the following situations would thenominal interest rate be the highest

1.The real interest rate is -1 percent, and the expected inflation rate is 3 percent.

2.The real interest rate is 0 percent, and the expected inflation rate is 1 percent.

3.The real interest rate is 1 percent, and the expected inflation rate is -1 percent.

4.The real interest rate is 2 percent, and the expected inflation rate is 2 percent.

5.The real interest rate is 3 percent, and the expected inflation rate is 0 percent.

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