1. Given the nominal interest rate of 17?% and the expected inflation of 13?%, then the value of the real interest rate is ___ ?
2. with the real interest rate equal to 3?% and the expected inflation equal to 4?%, then the value of the nominal interest rate is___?
3. A lender prefers a (high or lower) real interest rate while a borrower prefers a (higher or lower) real interest rate higher lowreal interest rate.