Which of the following best describes the nominal interest rate on a mortgage loan that a bank offers to a customer?
A
It is the real interest rate divided by the price level.
B
It is the real interest rate minus the expected inflation rate.
C
It is the interest rate charged by the bank.
D
It is the interest rate charged by the bank minus the expected inflation rate.
E
It is the interest rate charged by the bank minus the interest rate the bank pays to its depositors.