Please enter your answers for the following questions. Round…
Please enter your answers for the following questions. Round numerical answers to the nearest whole number and include the % sign. State whether lenders will be “better off”, “worse off”, or “the same”. State whether bond demand and bond supply will “increase”, decrease”, or “remain the same.” Suppose the nominal interest rate is 7% and the expected real interest rate is 3%. The expected rate of inflation is . If actual inflation ends up being 2%, the real interest rate will be and borrowers will be . Bond demand will and bond supply will .