When Borrowing Money to Purchase an Automobile,Raul Has the Choice

Multiple Choice

When borrowing money to purchase an automobile,Raul has the choice between a fixed nominal interest rate or adjustable nominal interest rate loan.Typically the adjustable rate loans start with a lower rate than the fixed rate loans.Given that,under what circumstances would Raul most likely want to borrow money at the higher fixed rate?

A) When he expects the inflation rate to rise
B) When he expects the inflation rate to decrease
C) When he expects the inflation rate to remain unchanged
D) When he expects the price level to remain stable
E) When he expects the government to act to lower the inflation rate