Ross is looking at a graph that shows the relation between inflation and unemployment. The graph measures the rate of inflation along the y-axis and the rate of unemployment along the x-axis. Among the points he observes on the graph (with y as the first value and x as the second) are (5, 4), (4, 4), (2, 4), and (1, 4). Ross is looking at a graph that shows a _____

Under rent control, landlords cease to be responsive to tenants' concerns about the quality of the housing because

a. with shortages and waiting lists, they have no incentive to maintain and improve their property. b. they become resigned to the fact that many of their apartments are going to be vacant at any given time. c. with rent control the government guarantees landlords a minimal level of profit. d. with rent control it becomes the government's responsibility to maintain rental housing.

Suppose the nominal interest rate this year is 6.5% and that the economy experiences 2.3% deflation. What is the real interest rate?