lend kay 1000 for a year at a nominal rate of interest of 5%. At the end

[BelindaD]

of the year prices have actually rise? Gladys agrees to lend kay 1000 for a year at a nominal rate of interest of 5%. At the end of the year prices have actually risen by 7%. Gladys earned a real rate of return of

A. - 2%
B. 2%
C. 5%
D. 7%