We can write the true relationship between the nominal interest rate, the real rate and expected inflation as:

Question $39$ options:

a$)$

$(1+$r$)=(1+$r$)(1+$h$*)$

b$)$

r$=(1+$r$*)(1+$h$)-1$

c$)$

r$*=(1+$r$)(1+$h$)-1$

d$)$