Ralph puts money in the bank and earns a $5$ percent nominal interest rate. If the inflation rate is $2$ percent, then after one year,

Ralph will have $3$ percent more money, which will purchase $7$ percent more goods.

Ralph will have $5$ percent more money, which will purchase $3$ percent more goods.

Ralph will have $5$ percent more money, which will purchase $7$ percent more goods.

Ralph will have $3$ percent more money, which will purchase $5$ percent more goods.