Consider the Situations of a Lender of Money and a Borrower

Multiple Choice

Consider the situations of a lender of money and a borrower of money. Which of the following situations is least burdensome for the borrower?

A) nominal interest rate of 8% and an inflation rate of 2%
B) nominal interest rate of 10% and an inflation rate of 1%
C) nominal interest rate of 15% and an inflation rate of 8%
D) nominal interest rate of 4% and an inflation rate of 4%
E) nominal interest rate of 29% and an inflation rate of 21%