Under Which of the Following Conditions Would You Prefer to Be

Multiple Choice

Under which of the following conditions would you prefer to be the borrower?

A) The nominal rate of interest is 12 per cent and the inflation rate is 9 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 5 per cent and the inflation rate is 1 per cent.
D) The nominal rate of interest is 15 per cent and the inflation rate is 14 per cent.