When Stephanie took out a one-year fixed-rate loan, she expected to pay a 1 point
real interest rate of 3 %. At the end of the year, the real interest rate had
fallen to 2 percent. Which of the following could have caused the decrease
in the real interest rate? *
O
There was an increase in the nominal interest rate
There
There was a decrease in the nominal interest rate
There was a decrease in the money supply
The actual inflation rate was greater than the expected inflation rate
The actual inflation rate was less than the expected inflation rate