Barbara is willing to loan $10,000 if she can earn a real interest rate of 6 percent. Everything else the same, if the inflation rate is 2 percent, she would agree to loan the $10,000 if the nominal interest rate is ________ because ________

A) 4 percent or higher; she would not earn her desired amount of 6 percent if the nominal interest rate was any lower
B) 4 percent or lower; she would not earn her desired amount of 6 percent if the nominal interest rate was any higher
C) 8 percent; she would earn more than her desired amount of 6 percent
D) 8 percent or lower; she would not earn her desired amount of 6 percent if the nominal interest rate was any higher
E)  8 percent or higher; she would not earn her desired amount of 6 percent if the nominal interest rate was any lower

FOR QUIZ ANSWER:

E)  8 percent or higher; she would not earn her desired amount of 6 percent if the nominal interest rate was any lower