Holding the nominal interest rate constant, the real interest rate increases when there is an increase in the inflation rate. It decreases when there is an increase in the inflation. Which of the following is true about the relationship between the real interest rate and the inflation rate?
A) The real interest rate increases with inflation
B) The real interest rate decreases with inflation
C) The real interest rate is not affected by inflation
D) The real interest rate is inversely related to inflation