Bill wants to borrow 0 from John. John wants to make 6% real
return on his money, so they both agree on a 6% interest rate paid
next year. Neither anticipate the actual -2% inflation rate next
year. In this case:
A. Bill will pay 6% in nominal interest rate.
B. Bill will pay 8% in real interest rate.
C. John is better off.
D. all of the above