The Following Table Lists Some Economic Agents and Their Intentions

Multiple Choice

The following table lists some economic agents and their intentions. At present the interest rate is 5 percent.

-Refer to the table above.You learn that currently the nominal interest rate lies below the real interest rate.From this you can infer that ________.

A) inflation is positive, and Sophie will end up paying her loan off faster than expected
B) inflation is negative, and Sophie will end up paying her loan off slower than expected
C) inflation is negative, and Sophie will end up paying off her loan faster than expected
D) inflation is negative, and Sophie will end up paying off her loan slower than expected