Multiple Choice
Under which of the following conditions would you prefer to be the lender?
A) The nominal rate of interest is 15 per cent and the inflation rate is 14 per cent.
B) The nominal rate of interest is 20 per cent and the inflation rate is 25 per cent.
C) The nominal rate of interest is 12 per cent and the inflation rate is 9 per cent.
D) The nominal rate of interest is 5 per cent and the inflation rate is 1 per cent.
Correct Answer:
Verified
Correct Answer:
Verified
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