Your friend has just started a savings account that is currently paying 5% interest. if inflation is expected to be 7% this next year, your friend will be earning a a) nominal return of 7% and a real return of 5%. b) nominal return of 5% and a real return of 5%. c) nominal return of 12% and a real return of 5%. d) nominal return of 5% and a real return of -2%.