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The higher the expected rate of inflation, _____. a. the higher is the nominal rate of interest that borrowers are willing to pay and the

The higher the expected rate of inflation, _____.

a. the higher is the nominal rate of interest that borrowers are willing to pay and the lower is the nominal rate that lenders require

b. the higher is the nominal rate of interest that borrowers are willing to pay and lenders require

c. the lower is the nominal rate of interest that borrowers are willing to pay and the higher is the nominal rate that lenders require

d. the lower is the nominal rate of interest that borrowers are willing to pay and lenders require

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