Suppose Lesley borrowed 50 to Ondi in 2020, with a repayment of 55 in 2021. If the nominal interest rate is 6% and 2021 prices are 10% higher than in 2020, this means that

• A. Lesley could buy 16% more than she could have bought with the sum she loaned to Ondi.
• B. Lesley could buy 4% less than she could have bought with the sum she loaned to Ondi.
• C.

  Lesley could buy only 4% more than she could have bought with the sum she loaned to Ondi.

• D. Lesley could buy 8% less than she could have bought with the sum she loaned to Ondi.
• E. Lesley could buy 8% more than she could have bought with the sum she loaned to Ondi.

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