If the nominal rate of interest is 5 percent for a bond issued by the United States Government and the inflation rate is 2​ percent, the real rate of interest is​ ___. The nominal rate of interest will​ _______ if the inflation rate rises or increases to 6 percent​ (that is, the inflation rate increases by 4​ percent).   A. ​unknown; rise by 4 percent   B. 3​ percent; rise by 4 percent   C. 3​ percent; fall by 4 percent   D. 7​ percent; fall by 4 percent

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A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

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A: Since you have asked multiple question, we will solve the first question for you. If you want any…

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