If the nominal interest rate is 7.5% and the expected inflation rate is 4%, what is the real rate of interest?
a) Less than 3.5%
b) Exactly 3.5%
c) Between 3.5% and 3.7%
d) Over 3.7% but less than 11.5%
e) Exactly 11.5%
f) More than 11.5%
g) The real rate of interest cannot be determined from the information provided