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Suppose that consumers are happy with 100 apples today or 103 apples in a year's...

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Suppose that consumers are happy with 100 apples today or 103 apples in a year's time. In this case the real interest rate is 3%. Suppose now that the apple price is expected to increase by 5% to $ 1.05 each. In that case, consumers will not be happy to give up $ 100 today for the promise of $ 103 next year. a) Based on Irving Fisher, if you want to buy 103 apples in a year's time, how my money will you need? b) In other words, what will be the nominal rate of interest

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