Dean borrows $400 from Andre. Andre wants to make a 10% real return on his money, so they both agree on a 10% interest rate paid next year. Dean and Andre did not anticipate any inflation, yet the actual inflation turned out to be 4% the following year. Who does the unexpected inflation benefit and why? Select one: O

a. Dean, because the real interest rate is lower.

b. Neither, because the inflation was unexpected. O

c. Dean, because the real interest rate is higher.

d. Andre, because the real interest rate is higher e. Andre, because the real interest rate is lower.