When Borrowing Money to Purchase a Car, Roberto Has the Choice

Multiple Choice

When borrowing money to purchase a car, Roberto has the choice between a fixed nominal interest rate and adjustable nominal interest rate loan. Typically the adjustable rate loans start with a lower rate than the fixed rate loan. Given that, Roberto would probably want to borrow money at the higher fixed rate when he expects the

A) Inflation rate to rise.
B) Inflation rate to fall.
C) Inflation rate to remain unchanged.
D) Government to take action to lower the inflation rate in the near future.