If the inflation rate falls and nominal interest rates are unchanged,

A) inflation will fall.
B) inflation will continue at the same rate.
C) real interest rates rise.
D) real interest rates are unaffected.
E) real interest rates fall.

Nominal Interest Rates

The rate of interest before adjustment for inflation, representing the face value of borrowing costs or investment returns.

Real Interest Rates

Interest rates adjusted for inflation, showing the real cost of borrowing or real yield of saving.