When the Expected Inflation Rate Is Zero, Then It Follows

Multiple Choice

When the expected inflation rate is zero, then it follows that the

A) real interest rate is greater than the nominal interest rate.
B) demand for loanable funds is equal to the supply of loanable funds.
C) demand for loanable funds is greater than the supply of loanable funds.
D) real interest rate is less than the nominal interest rate.
E) none of the above