Alex Wants to Borrow $1,000 from Kara

Alex wants to borrow $1,000 from Kara.If he repays the loan in one year, Kara will require him to pay 5 percent interest on the loan.If Alex wants to repay the loan over three years, but Kara strongly prefers present to future consumption, we would expect the interest rate on a three-year loan to be

A) lower than for a one-year loan.
B) greater than for a one-year loan.
C) the same as for a one-year loan.
D) higher if Kara expected there to be no inflation over the loan repayment period.