Suppose the nominal interest rate on a one-year car loan is 6% and the inflation rate is expected to be 2% over the next year. Based on this information, we know:

(2pts)

Question 15 - Suppose the nominal interest rate on a one-year car loan is 6% and the inflation rate is expected to be 2% over the next year. Based on this information, we know:

Select The ex post real interest rate 12%. as your answer

The ex post real interest rate 12%.

Select The ex ante real interest rate is 4%. as your answer

The ex ante real interest rate is 4%.

Select At the end of the year, the borrower pays only 2% in nominal interest. as your answer

At the end of the year, the borrower pays only 2% in nominal interest.

Select The lender benefits more than the borrower because of the difference in the nominal versus real interest rates. as your answer

The lender benefits more than the borrower because of the difference in the nominal versus real interest rates.