Question: A bank expected a 2 % inflation rate when it gave an auto loan with a 7 % interest rate. Then the inflation rate dropped

A bank expected a 2% inflation rate when it gave an auto loan with a 7% interest rate. Then the inflation rate dropped to -1%.This redistributes wealth in favor of the _________, since the real interest rate has ________.
A.
bank; risen.
B.
borrower; risen.
C.
borrower; fallen.
D.
bank; fallen.

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