The two-year interest rate is 14.0% and the expected annual inflation rate is 7.0%.   a.What is the expected real interest rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)           b-1. If the expected rate of inflation suddenly rises to 9.0%, what does Fisher’s theory say about how the real interest rate will change?   multiple choice Real rate decreases Real rate does not change Real rate increases     b-2. If the expected rate of inflation suddenly rises to 9.0%, what will be the new nominal rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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