Jake Loaned Elwood $5,000 for One Year at a Nominal

Multiple Choice

Jake loaned Elwood $5,000 for one year at a nominal interest rate of 10 percent.After Elwood repaid the loan in full,Jake complained that he could buy 4 percent fewer goods with the money Elwood gave him than he could before he loaned Elwood the $5,000.From this,we can conclude that the rate of inflation during the year was

A) -4 percent.
B) 4 percent.
C) 6 percent.
D) 14 percent.