Marco expects the inflation rate to be 6 percent, and he is willing to pay a real interest rate of 3 percent. jin expects the inflation rate to be 6 percent, and she is willing to lend money if she receives a real interest rate of 3 percent. if the actual inflation rate is 5 percent and the loan contract specifies a nominal interest rate of 9 percent, then:

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W0lf93
We have Nominal Interest Rate = Real Interest Rate + Inflation Rate 
Marco: Inflation Rate = 6%; Real Interest = 3%; Nominal Interest Rate = 9% 
Jin would lend money only if Inflation Rate = 6%; Real Interest Rate = 3%;  
Nominal Interest Rate = 9% 
Given Actual Inflation Rate = 5%; Nominal Rate = 9%;  
Real Rate = 9% - 5% = 4%. 
Since the real interest rate became low for Marco, it will be a advantage for him.