If the interest rate on loans before adjusting for inflation is 9%, and the expected inflation rate is 4%, then which of the following must be true?

A. Lenders are expected to receive an additional 4% on their loaned funds.

B. Borrowers are expected to pay an additional 4% on their borrowed funds.

C. The expected real interest rate is 9%.

D. The expected real interest rate is 13%.

E. The nominal interest rate is 9%.

The answer would be c

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The answer is    (d) 7/2======we have    we also  have an integral      notice how function f splits up at x = 0. there's a left piece and a right pieceso we'll need to do the same thing with our integral: split it at x = 0we use a property of integrals that allows us to split up and sum:     notice that for the piecewise function f, the function has the equationf(x) = x when x  ≤ 0. so for the integral  , f(x) = x so it changes into      for the piecewise function f, the function has the equationf(x) = x+1  when x  > 0. for the integral  , we have    therefore, back to our splitted integral:    

Answer the discount rate