Marta Lends Money at a Fixed Interest Rate and Then

Multiple Choice

Marta lends money at a fixed interest rate and then inflation turns out to be higher than she had expected it to be.The real interest rate she earns is

A) higher than she had expected,and the real value of the loan is higher than she had expected.
B) higher than she had expected,and the real value of the loan is lower than she had expected.
C) lower than she had expected,and the real value of the loan is higher than she had expected.
D) lower then she had expected,and the real value of the loan is lower than she had expected.