If the nominal interest rate was 4 percent, the expected real interest rate was 3 percent, and the realized real interest rate was 5 percent, then the expected inflation rate was ____ and the realized inflation rate was ____.
A. ?1 percent; 1 percent
B. ?1 percent; 2 percent
C. 1 percent; ?1 percent
D. 1 percent; 1 percent
Answer: C
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